What Is Agreement Arbitration Mean
Agreement arbitration is a legal process in which two or more parties who are in a dispute agree to have a neutral third party, also known as an arbitrator, review the evidence and make a decision to resolve the dispute. This process is outlined in a specific agreement that both parties sign to confirm their agreement to arbitration.
Arbitration can be chosen for many reasons, including avoiding a public trial, reducing the cost of litigation, and shortening the time required to reach resolution. In addition, parties may prefer arbitration over court proceedings because they have more control over the details of the process, such as the selection of the arbitrator, the location of the arbitration, and the rules governing the proceedings.
The arbitrator acts as a judge and hears evidence from both sides, such as testimony from witnesses, documents, and other forms of evidence. After considering all the evidence provided, the arbitrator will then issue a written decision that is binding on both parties.
Agreement arbitration can be a useful method for resolving disputes between parties in a variety of contexts, such as commercial disputes, labor disputes, and disputes between consumers and businesses. It is important to note, however, that not all disputes can be resolved through arbitration, and it is important to carefully consider the specific circumstances of each situation before agreeing to arbitration.
It is also important to understand that agreement arbitration is a separate legal process from mediation. While both processes aim to resolve disputes without resorting to litigation, mediation is a non-binding process in which a neutral third party works with both parties to come to a mutually agreeable resolution.
In summary, agreement arbitration is a legal process that can be used to resolve disputes between parties outside of court. It involves a neutral third party, the arbitrator, hearing evidence from both sides and issuing a binding decision on the matter. It can be a useful method for resolving disputes in a variety of contexts, but it is important to carefully consider the circumstances of each situation before agreeing to arbitration.