ARBITRATION CLAUSE Meaning and
Definition
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An arbitration clause is a provision typically found in a legal contract that establishes the use of arbitration as the method for resolving any disputes or disagreements arising from the contract. It is a legally binding agreement between parties to resolve their differences or conflicts without resorting to traditional court litigation.
In simpler terms, an arbitration clause is a specific section within a contract that mandates both parties to resolve any disagreements through arbitration rather than going to court. Arbitration is an alternative dispute resolution (ADR) method in which a neutral third party, called an arbitrator, listens to the arguments presented by both sides and makes a binding decision that determines the outcome of the dispute.
These clauses outline the specifics of the arbitration process, including the selection and number of arbitrators, the choice of governing law, the location of the arbitration, and the procedures to be followed. The inclusion of an arbitration clause in a contract ensures that any disputes arising from the contract will be resolved privately, efficiently, and in a less formal setting.
Arbitration clauses are commonly found in various types of contracts, such as employment agreements, commercial contracts, construction contracts, and consumer agreements. They are intended to offer parties an alternative to costly and time-consuming litigation, promoting a more expeditious and cost-effective resolution of their conflicts.
Common Misspellings for ARBITRATION CLAUSE
- zrbitration clause
- srbitration clause
- wrbitration clause
- qrbitration clause
- aebitration clause
- adbitration clause
- afbitration clause
- atbitration clause
- a5bitration clause
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- arvitration clause
- arnitration clause
- arhitration clause
- argitration clause
- arbutration clause
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Etymology of ARBITRATION CLAUSE
The word "arbitration" comes from the Latin word "arbitratus", which means "judgment" or "decision". It is derived from the verb "arbiter", meaning "to judge" or "to witness".
The word "clause" has Old French origins, derived from the Latin word "clausa", which means "closed" or "enclosed". It refers to a distinct provision or section within a legal document.
Therefore, the etymology of the term "arbitration clause" combines "arbitration" from Latin and "clause" from Old French and Latin, indicating a specific provision within a contract that establishes the use of arbitration as a method for resolving disputes.
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