Sarita Garg's Legal Blog

In basic terms, an “arbitration clause” is a paragraph that is typically inserted into a contract or written agreement, and provides that all parties to the contract or agreement, agree that if a dispute should arise between the parties, then all parties agree to go through the “arbitration process”.  You may be wondering, what is arbitration?  Arbitration, alterative dispute resolution (ADR), or mediation, all refer to a process where the disputing parties meet outside the court system, and an aribitrator/mediator, who is a neutral party, will hear both sides of the dispute, and encourage a  settlement of some sort.  Of course, as a matter of public policy, the judicial system is suuportive of such methods for resolving disputes, as it keeps the courthouses less crowded.  For more detailed information on arbitration, and the legal signficance of arbitration clauses, please feel free to contact our office at 281.210.0010.