What is the arbitration clause in a contract?

The arbitration clause in a contract is a clause that states that any disputes between the parties to the contract shall be settled through arbitration. This clause is important as it allows the parties to resolve their dispute without going to court. Arbitration is a form of alternative dispute resolution that is faster, cheaper, and often more private than the court system. In Washington, arbitration is governed by the Washington Arbitration Act which is found in Title 7 of the Revised Code of Washington. The Act provides the rules and procedures that must be followed when parties are engaging in arbitration. It also outlines the rules for appointing an arbitrator, the fees associated with arbitration, and the opportunity to challenge the decision of the arbitrator. The arbitration clause in a contract should provide a clear definition of the dispute that will be subject to arbitration and any other conditions the parties wish to include. For example, a clause may specify a certain type of arbitrator or rules of evidence. It is also important that the arbitration clause be fully understood by the parties so that they can all agree to the same terms. In Washington, it is important to have the agreement in writing and signed by all parties involved.

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What is the arbitration clause in a contract?

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