What is an agreement to arbitrate?
An agreement to arbitrate is an agreement between two parties that voluntarily agrees to resolve disputes through binding arbitration as opposed to litigation in the court system. This agreement is a legal contract that allows both parties to resolve their disputes quickly and privately by having a neutral third-party (the arbitrator) decide the dispute. The arbitrator is usually an experienced attorney and can be chosen by the parties themselves or appointed by a court. When a party agrees to arbitration, they are giving up the right to go to court and to have their case decided by a judge or jury. In South Carolina, the agreement to arbitrate must be in writing, signed by both parties, and sent to the other party. The agreement can specify the terms of the arbitration process, including the process for selecting the arbitrator, the laws that will be applied to the dispute, and the location of the hearing. Once an agreement to arbitrate is in place, the parties are obligated to abide by the outcome of the arbitration process, which is legally binding. This means that the parties must abide by the decision made by the arbitrator, even if they disagree with the outcome. Most importantly, it is important to note that an agreement to arbitrate is not a substitute for legal advice and parties should always consult an attorney before signing any type of agreement.
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