What is the arbitration clause in a contract?

An arbitration clause is a contractual agreement between two parties which states that, should a dispute arise between them, they will use arbitration instead of the traditional court system to resolve the dispute. An arbitration clause is usually included in contracts and other formal agreements. In Ohio, arbitration clauses are enforced by the courts and are considered to be valid and binding agreements under Ohio law. This means that, if two parties have signed an arbitration agreement, they must abide by its terms and use arbitration to settle any disputes that arise from the contract. The arbitration clause typically includes the details of the arbitration process and the arbitrator who is responsible for settling disputes. These details can include who will appoint the arbitrator, what the process will look like, how long the process will take, and how much it will cost. Additionally, the clause may also set parameters for how the arbitrator will make their decision. In any contract containing an arbitration clause, both parties are expected to comply with its terms and to use the specified arbitration process to resolve any disputes that arise. A failure to do so may result in the contract being voided by the courts.

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What is the arbitration clause in a contract?

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