Arbitration clause is a contractual clause that specifies arbitration as the method for resolving disputes, avoiding court litigation. It appoints an impartial arbitrator to hear and decide the case. The clause defines the framework, rules, and procedures for arbitration, ensuring clarity and mutual agreement on dispute resolution.
Drafting Tip
Define the arbitration process, including the rules to be used, the seat of arbitration, and how arbitrators are selected. Consider whether arbitration limits legal rights or remedies.
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