Appraisal Clause

An appraisal clause is a feature in a contract, often in insurance or sale agreements, allowing an independent expert to determine the fair value of an item or property if there's a dispute or disagreement about its worth. This process ensures that both parties agree on a fair price or claim settlement based on an unbiased evaluation. It provides a neutral way to resolve valuation disagreements without needing to go to court, helping to make transactions smoother and fairer for all involved.