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Glite Dictionary
arbitration clause

arbitration clause

3 7.0
A part of a contract that says a neutral person outside the courts decides disagreements
  • noun
  • /ˌɑːrbɪˈtreɪʃən klɔːz/
  • Formal
translation icon : cláusula de arbitraje
  • In those jurisdictions, a binding fee arbitration clause in the fee agreement is probably permissible.
  • arbitration clause in contracts
  • predispute arbitration clause
  • mandatory arbitration clause

A court probably wouldn't find this arbitration clause unconscionable.

Examples

  • The notice added an arbitration clause to the Agreement stating any claim, dispute or controversy.

  • The issue of binding arbitration clauses for malpractice claims is more complex.

    Academic text (1997)

  • That is an arbitration clause, but it may not be binding.

    Lucky You (2007)

  • The court then considered the substance of the arbitration clause.

    Academic text (2018)

  • As I told you, lawyers are not taught how to negotiate arbitration clauses in law schools.

    Academic text (1991)

  • A lot of people do not like to negotiate arbitration clauses in contracts and therefore do not do so.

    Academic text (1991)

  • One sought to ban mandatory arbitration clauses altogether.

    Academic text (2016)

  • A court probably wouldn't find this arbitration clause unconscionable.

    YaleCourses

  • "An arbitration clause is a jury trial waiver, and those have to be done knowingly and voluntarily."

    Academic text (2001)

  • The contract included an arbitration clause that required disputes to be settled outside of court.

Antonyms

litigation
  • Specialized
119 7.7

To use the courts to settle a dispute

How Binding

arbitration clause
  • Formal
3 7.0
mediation
41 4.2

Surface Forms

arbitration clause singular
arbitration clauses plural

Morphology

arbitration + clause

The meaning is directly and transparently built from 'arbitration' (a method for resolving disputes) plus 'clause' (a contractual provision): it denotes a contract provision about arbitration. This is a literal compositional legal phrase that maps directly onto similar constructions in other languages, so a learner who knows both constituents will understand it.

Etymology

The phrase arbitration clause is a short clause in a contract that says both sides must use arbitration, where a neutral person called an arbitrator decides the dispute. So the clause tells the parties to solve problems 'out of court' instead of going to a public court.