What is an agreement to arbitrate?
An agreement to arbitrate is a contract between two parties. It states their mutual agreement to submit any disputes arising between them to an arbitrator, rather than using the courts. This type of agreement is typically found in employment contracts, commercial contracts, purchase agreements, and other types of legal documents. Under California law, arbitration agreements must be in writing, must be signed by both parties, and must be properly witnessed. The contract must state the nature of the dispute that can be arbitrated and the procedure that will be followed. It is important to note that certain matters are prohibited from being subject to arbitration, such as certain family law matters, or matters involving a matter of public policy or criminal law. The arbitration process itself typically involves both parties presenting their cases to an agreed-upon arbitrator, who will then make a final decision. The decision of the arbitrator is usually binding and can usually be enforced in a court of law if one of the parties fails to comply. Overall, an agreement to arbitrate is a contract between two parties that states that they agree to submit any disputes arising between them to the decision of an arbitrator, rather than a court of law. This can be a cost-effective and efficient way of resolving disputes, as it avoids costly court battles.
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