Arbitration clause: Copy, customize, and use instantly
Introduction
An arbitration clause outlines how disputes between the parties will be resolved outside of court. It establishes arbitration as the method for resolving conflicts, providing clarity and avoiding lengthy litigation. This clause is particularly useful in contracts where speed, privacy, or specialized expertise in dispute resolution is valued.
Below are arbitration clause templates for different scenarios. Copy the one you need, customise it, and add it to your contract.
Standard arbitration clause
This clause specifies arbitration as the default method for dispute resolution.
Any dispute, claim, or controversy arising out of or relating to this agreement will be resolved exclusively through binding arbitration administered by [insert arbitration body, e.g., “the American Arbitration Association”] under its rules. The arbitration will take place in [insert city/state], and the decision will be final and binding.
Confidential arbitration clause
This clause emphasizes the confidentiality of the arbitration process.
All disputes arising out of or related to this agreement will be resolved through confidential binding arbitration administered by [insert arbitration body]. The arbitration proceedings, including all submissions, evidence, and awards, will remain strictly confidential.
Expedited arbitration clause
This clause prioritizes speed in the arbitration process.
Any disputes under this agreement will be resolved through expedited arbitration conducted by [insert arbitration body] under its expedited procedures. The arbitration will be concluded within [insert time frame], and the arbitrator’s decision will be final and enforceable.
Multi-tiered arbitration clause
This clause establishes steps before arbitration is initiated.
The parties agree to resolve disputes through good faith negotiations and, if unsuccessful, mediation under [insert mediation body] rules. If mediation fails, the dispute will proceed to binding arbitration administered by [insert arbitration body].
Arbitration with specific arbitrator qualifications clause
This clause requires arbitrators to meet particular qualifications.
Any arbitration under this agreement will be conducted by an arbitrator with at least [insert number] years of experience in [insert specific field, e.g., “intellectual property law”]. The arbitration will be administered by [insert arbitration body] in accordance with its rules.
Location-specific arbitration clause
This clause designates the arbitration location.
All disputes arising under this agreement will be resolved through arbitration conducted in [insert city/state]. The arbitration will be administered by [insert arbitration body] and governed by its rules.
Arbitration with limited discovery clause
This clause restricts the scope of discovery during arbitration.
Arbitration under this agreement will be conducted with limited discovery, as determined by the arbitrator, to minimize time and expense. The arbitration will be administered by [insert arbitration body].
Arbitration with shared costs clause
This clause outlines cost-sharing for arbitration.
The costs of arbitration, including arbitrator fees and administrative expenses, will be shared equally by both parties, unless otherwise awarded by the arbitrator. Arbitration will be conducted under the rules of [insert arbitration body].
Appealable arbitration clause
This clause allows limited appeals of arbitration decisions.
The arbitrator’s award may be appealed to a second arbitrator or panel within [insert time frame] under the rules of [insert arbitration body]. The decision of the appellate arbitration will be final and binding.
Arbitration with punitive damages exclusion clause
This clause limits the types of damages available in arbitration.
Arbitration under this agreement will not include punitive or exemplary damages, regardless of the claims asserted. The arbitrator is limited to awarding compensatory damages only.
Industry-specific arbitration clause
This clause tailors arbitration to industry-specific needs.
All disputes under this agreement will be resolved through arbitration administered by [insert arbitration body] with arbitrators who have expertise in [insert industry, e.g., “construction” or “healthcare”]. The arbitration process will follow the industry’s standard dispute resolution rules.
Arbitration with interim relief clause
This clause allows parties to seek temporary relief in court before arbitration.
Notwithstanding this arbitration clause, either party may seek interim or injunctive relief from a court of competent jurisdiction to preserve the status quo or prevent irreparable harm before the arbitration process begins.
Final-offer arbitration clause
This clause requires the arbitrator to select one party’s final offer without modification.
Any dispute arising under this agreement will be resolved through final-offer arbitration administered by [insert arbitration body]. Each party will submit its final offer, and the arbitrator will select one offer in its entirety without modification.
Waiver of class arbitration clause
This clause ensures arbitration occurs only on an individual basis.
All disputes under this agreement must be resolved through individual arbitration. The parties expressly waive the right to participate in any class, collective, or representative action in arbitration.
Multi-party arbitration clause
This clause outlines rules for arbitration involving multiple parties.
In the event of disputes involving more than two parties, all claims will be consolidated into a single arbitration proceeding, unless otherwise agreed in writing. The arbitration will be administered by [insert arbitration body].
Language-specific arbitration clause
This clause requires arbitration to be conducted in a specific language.
Arbitration under this agreement will be conducted in [insert language], and all documents, evidence, and submissions must be translated into [insert language] if necessary.
Arbitration with time-bar clause
This clause sets a deadline for initiating arbitration.
Any claim under this agreement must be submitted to arbitration within [insert time frame, e.g., “one year”] from the date the claim arises. Claims submitted after this period will be barred.
Hybrid arbitration clause
This clause allows a mix of arbitration and court proceedings.
Disputes under this agreement involving claims under [insert specific section or topic] will be resolved through arbitration, while disputes involving [insert another section or topic] may be resolved in court at the election of either party.
Arbitration by majority vote clause
This clause requires decisions to be made by a panel of arbitrators.
Disputes will be resolved by a panel of three arbitrators. The decision will be determined by majority vote, and the panel will follow the rules of [insert arbitration body].
Non-English arbitration clause
This clause allows for arbitration in multiple languages.
Arbitration may be conducted in [insert language(s)], depending on the primary language of the disputing parties, as mutually agreed upon before the proceedings begin.
Conditional arbitration clause
This clause makes arbitration contingent on an initial step.
Arbitration under this agreement will occur only after the parties attempt good-faith negotiations for a minimum period of [insert time period]. If the negotiations fail, the dispute will proceed to arbitration.
Arbitration with shared venue selection clause
This clause allows both parties to mutually decide the venue.
The venue for arbitration will be selected by mutual agreement of the parties. If no agreement is reached within [insert time frame], the venue will default to [insert city/state].
Arbitration with capped awards clause
This clause limits the maximum damages that can be awarded.
The arbitrator’s award under this agreement will not exceed [insert amount], regardless of the type or number of claims brought.
Independent mediator-arbitrator clause
This clause uses mediation before arbitration with the same neutral party.
Disputes under this agreement will first be mediated by a neutral party. If unresolved, the mediator will transition into the role of arbitrator to resolve the dispute through binding arbitration.
Arbitration with exclusive arbitrator clause
This clause specifies a single arbitrator to be used exclusively.
All disputes arising under this agreement will be resolved by [insert arbitrator’s name or position], acting as the sole arbitrator, with no substitutions unless mutually agreed by the parties.
Arbitration with milestone-based resolution clause
This clause ties arbitration to specific project milestones.
Disputes related to the [specific milestone, e.g., “completion of deliverables”] will be resolved exclusively through binding arbitration, and the arbitrator will have expertise in [insert industry/subject].
Multi-venue arbitration clause
This clause allows arbitration in more than one jurisdiction.
Arbitration proceedings may be initiated in either [insert jurisdiction] or [insert jurisdiction], as mutually agreed by the parties. If no agreement is reached, the initiating party’s preferred venue will apply.
Arbitrator discretion clause
This clause gives arbitrators flexibility in applying rules.
The arbitrator will have full discretion to modify procedural rules to ensure a fair and efficient resolution, provided such modifications do not conflict with the laws of [insert jurisdiction].
Sector-specialized arbitration clause
This clause narrows arbitration expertise to specific sectors.
Arbitration under this agreement will be conducted by an arbitrator with at least [insert number] years of experience in the [insert sector, e.g., “software development” or “construction”] industry.
Mandatory group arbitration clause
This clause consolidates disputes from related contracts.
Disputes under this agreement and any related agreements between the parties must be consolidated into a single arbitration proceeding, ensuring consistent resolution across agreements.
Arbitration with interim reporting clause
This clause requires periodic updates during arbitration.
The arbitrator will provide interim reports to both parties at specified intervals during the arbitration process, detailing procedural progress and any preliminary findings.
Arbitration with final settlement option clause
This clause allows arbitration to end in a negotiated settlement.
At any point during the arbitration process, the parties may agree to a final settlement, which will terminate the arbitration proceedings without further costs or awards.
Arbitration with cost reimbursement clause
This clause shifts costs depending on the outcome.
The prevailing party in arbitration will be entitled to reimbursement of arbitration fees and reasonable legal expenses from the non-prevailing party, as determined by the arbitrator.
Arbitration with language waiver clause
This clause allows language requirements to be waived.
Either party may waive the requirement for arbitration to be conducted in [insert language], provided both parties agree to proceed in the arbitrator’s native language.
Arbitration with technology-assisted process clause
This clause allows for virtual arbitration.
Arbitration will be conducted using technology-assisted platforms, including virtual hearings, electronic evidence submission, and video conferencing, to expedite the process and reduce costs.
Arbitration with language waiver clause
This clause allows language requirements to be waived.
Either party may waive the requirement for arbitration to be conducted in [insert language], provided both parties agree to proceed in the arbitrator’s native language.
Arbitration with precedent restriction clause
This clause excludes the use of past decisions as binding precedent.
The arbitrator’s decision under this agreement will be final and binding but will not serve as precedent in any other arbitration or legal proceedings involving the parties.
Arbitration with mutual cost caps clause
This clause limits the costs each party must bear.
The costs of arbitration, including arbitrator fees and administrative expenses, will be capped at [insert amount] per party, unless otherwise awarded by the arbitrator in extraordinary circumstances.
Arbitration with neutral location clause
This clause specifies a location unrelated to either party.
Arbitration will be conducted in [insert neutral city/country] to ensure impartiality. Neither party’s principal place of business or operations will influence the venue selection.
Arbitration with pre-approved arbitrators clause
This clause allows parties to agree on a panel of arbitrators in advance.
The parties agree to select arbitrators from a pre-approved list provided at the time of this agreement. If no arbitrator is mutually agreed upon, one will be appointed by [insert arbitration body].
Arbitration with expedited evidence review clause
This clause focuses on fast evidence processing during arbitration.
The arbitrator will enforce expedited evidence submission and review procedures, requiring all evidence to be submitted within [insert timeframe] from the commencement of arbitration.
Arbitration for intellectual property disputes clause
This clause tailors arbitration to IP-related disputes.
Any dispute related to intellectual property rights arising under this agreement will be resolved exclusively through arbitration administered by [insert arbitration body] with arbitrators specializing in intellectual property law.
Arbitration with independent legal advisor option clause
This clause allows parties to retain advisors without affecting arbitration.
Each party may retain an independent legal advisor during arbitration proceedings. The arbitrator will consider submissions from these advisors without requiring their direct involvement in hearings.
Arbitration with time allocation clause
This clause specifies maximum time limits for hearings.
Arbitration hearings will be limited to [insert number] days, with equal time allocated to each party for presenting evidence and arguments, unless extended by mutual agreement.
Arbitration with simplified rules for minor claims clause
This clause simplifies arbitration for smaller disputes.
Disputes involving claims of less than [insert amount] will follow a simplified arbitration process, including limited discovery and a single arbitrator. The decision will be final and enforceable.
Arbitration with recovery of lost time clause
This clause allows adjustments for delays caused by either party.
If arbitration is delayed due to a party’s failure to cooperate or comply with procedural requirements, the arbitrator may allocate additional costs or impose an adverse inference against the delaying party.
Arbitration with tiered confidentiality clause
This clause applies different levels of confidentiality to different stages.
Preliminary arbitration proceedings will be subject to limited confidentiality, while all final submissions, evidence, and awards will be strictly confidential and not disclosed to third parties.
Arbitration with regional expert arbitrators clause
This clause ensures arbitrators have expertise in the relevant regional laws.
Arbitration will be conducted by arbitrators with substantial expertise in the laws and regulations of [insert region], as administered by [insert arbitration body].
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.