What is the arbitration clause in a contract?

In South Carolina, an arbitration clause is a provision in a contract that requires any disputes that arise between the two parties to be resolved through an arbitration process rather than through the court system. This clause makes it so that the two parties are not able to bring their dispute to a court of law. Instead, they must file a demand for arbitration in order to initiate the process. The arbitration clause outlines the process of mediation, what topics will be discussed, and how the dispute will be settled. This clause typically includes the selection of one or more arbitrators, the timeframe in which the arbitration must take place, and which state’s laws will be used when settling the dispute. The clause also outlines the fees that will be paid by each party and how the award will be divided between them. The arbitration process is usually conducted before a neutral third-party, such as a lawyer, a retired judge, or a panel of individuals selected by both parties. They will listen to both sides of the dispute and make an award based on the contractual agreement and the applicable law. The arbitration award is binding and can be enforced in court – although the parties can agree to have the award vacated or appealed.

Related FAQs

How do I submit evidence in an arbitration hearing?
What is the Federal Arbitration Fairness Act?
What is a motion to disqualify an arbitrator?
What is a motion to compel arbitration?
What is a petition to confirm an arbitration award?
Is there an appeals process for a motion to compel, stay or vacate an arbitration award?
What is the importance of confidentiality in arbitration?
What is a Model International Commercial Arbitration Act?
Are there any defenses to an arbitration agreement?
What is arbitration law?

What is the arbitration clause in a contract?

Related FAQs

Related Blog Posts