Model Arbitration Clause

A Model Arbitration Clause is a standardized legal provision included in contracts that requires both parties to resolve disputes through arbitration instead of going to court. Arbitration is a method where an impartial third party, called an arbitrator, reviews the case and makes a decision. This process can be quicker, private, and less formal than court proceedings. The clause provides clear rules for how disputes are handled, helping to prevent lengthy legal battles and encouraging a more efficient resolution process, while still binding both parties to abide by the arbitrator’s decision.