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OTHER NAMES ADR Alternative Dispute Resolution

What is an Arbitration Agreement?

An Arbitration Agreement is simply a legal agreement by two parties to work any potential disputes out through arbitration rather than through court. Arbitration Agreements are often made early in a relationship and help both parties can help prevent unnecessary legal costs and hassles down the road. These agreements can help you get to a quicker and cheaper resolution for common legal disputes.

When to use an Arbitration Agreement:

You're in a dispute with a business partner and want to avoid the high costs of court.
You'd like to form an agreement with a business partner regarding how you'll handle future disputes.

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ARBITRATION AGREEMENT

This Agreement is made on , between of , , , hereinafter referred to as "First Party" and of , , , hereinafter referred to as "Second Party."


WHEREAS the parties hereto have been carrying on business in in the name of ;

NOW IT IS AGREED BETWEEN THE PARTIES HERETO AS FOLLOWS:

The parties hereto agree to refer the following matters and responsibilities to the Arbitrator:

In the event there are any disputes or controversies that arise between the parties pursuant to the terms of the aforesaid Contract, then the parties are waiving their right to litigate these issues in court and instead elect to have these disputes resolved through arbitration.

The parties agree that any disputes are to be arbitrated through the American Arbitration Association and that the parties agree to abide by the rules of the Commercial Arbitration Rules of the American Arbitration Association.

WHEREFORE, it is agreed that all claims and disputes arising or relating to the Contract are to be settled by binding arbitration in the . Said arbitration is to be resolved through the Commercial Arbitration Rules of the American Arbitration Association and the parties agree to abide by these rules.

Any decision or award as a result of any such arbitration shall be issued in writing and the arbitrator shall be mutually selected pursuant to the Commercial Arbitration Rules of the American Arbitration Association.

Any arbitration award may be confirmed in a court of competent jurisdiction.

This Agreement shall be signed by on behalf of and by on behalf of .


By:	Date:


By:	Date: