A general arbitration agreement is a contract that two or more parties enter into when they agree to settle disputes through arbitration instead of going to court. Arbitration is a form of alternative dispute resolution that is often preferred over litigation because it is typically faster and less expensive. Here are some key things you should know about general arbitration agreements:
What is arbitration?
Arbitration is a form of dispute resolution that is generally faster and less expensive than litigation. In arbitration, a neutral third party (the arbitrator) listens to both sides of a dispute and makes a decision about how the dispute should be resolved. The decision is usually binding, which means that it cannot be appealed.
What is a general arbitration agreement?
A general arbitration agreement is a contract between two or more parties in which they agree to use arbitration to resolve any disputes that may arise between them. The agreement will typically specify the rules that will be used to conduct the arbitration, the number of arbitrators that will be used, and the location where the arbitration will take place.
What are the advantages of using arbitration?
There are several advantages to using arbitration instead of going to court. First, arbitration is usually faster than litigation. This is because the parties can agree to a schedule that works for them, instead of being dependent on the court`s calendar. Second, arbitration is usually less expensive than litigation. The parties can avoid many of the costs associated with going to court, such as filing fees and the costs of hiring lawyers. Finally, arbitration is often less adversarial than litigation. This means that the parties may be able to preserve their relationship even if they are not able to resolve their dispute.
What are the disadvantages of using arbitration?
There are also some disadvantages to using arbitration instead of going to court. First, the parties may have less control over the process than they would if they went to court. This is because the arbitrator has the final say in how the dispute is resolved. Second, there is no right to an appeal in arbitration. This means that if the parties are not satisfied with the arbitrator`s decision, they may not be able to do anything about it. Finally, arbitration can be more difficult to enforce than a court judgment. This is because the parties may need to go to court to get an order enforcing the arbitrator`s decision.
In conclusion, a general arbitration agreement is a contract that can be very useful for parties who want to avoid the time and expense of litigation. However, it is important to carefully consider the advantages and disadvantages of using arbitration before entering into an agreement. With the right preparation, however, an arbitration agreement can be an effective way to resolve disputes quickly and fairly.