Arbitration Agreement Cost

Clients Rate Lawyers on our Platform 4.9/5 Stars
based on 3,979 reviews

Jump to Section

Need help with an Arbitration Agreement?

CREATE A FREE PROJECT POSTING
Post Project Now

What does an arbitration agreement cost? If you have a legal contract and want to include an alternate dispute resolution, you may ask about the cost of an arbitration agreement. Let’s explore this question and review some general information about arbitration agreements.

How Much Does an Arbitration Agreement Cost?

An arbitration agreement is a legally binding contract clause that provides parties to the contract with an alternative to civil court litigation if a dispute arises.

Instead of the parties spending money on lawyers and court fees, they will enter into the arbitration process if there is an issue concerning the contract.

Arbitration is a faster and more affordable way to resolve a conflict than filing a lawsuit in civil court. In addition, arbitration is less formal than legal proceedings. In most cases, both parties have the right to be represented by a lawyer.

Arbitration requires limited discovery, but there is still a hearing and the opportunity to question witnesses. Then, a pre-determined arbitrator decides the case's outcome instead of a judge.

Arbitration agreements have many positives and disadvantages for the parties entering the agreement. To fully understand the scope of an arbitration agreement and ensure it is legally binding, it is recommended that an experienced attorney drafts this contract.

A contract attorney familiar with arbitration agreements will know what this clause must include to protect all parties and ensure a smooth arbitration process if it is ever needed.

Based on ContractsCounsel’s marketplace data, the average cost of an arbitration agreement is $624.50 across all states and industries.

What is Included in an Arbitration Agreement?

Arbitration clauses are generally a standard clause within a larger contract that informs the parties they are agreeing to arbitration as an alternative dispute resolution method.

An arbitration clause typically says that all disputes arising under the larger contract will be submitted to binding arbitration. However, sometimes a contract will say that only certain disputes will be arbitrated.

Other information that may be found in an arbitration agreement includes:

  • The kinds of disputes are subject to arbitration
  • Arbitration rules like the American Arbitration Association (AAA) rules or the United States Arbitration & Mediation Rules of Arbitration
  • Whether there will be one arbitrator or a panel of arbitrators
  • How the arbitrator(s) is chosen

The clause should also state that the parties signing acknowledge that the arbitrator’s decision is final and binding.

Advantages and Disadvantages of Signing an Arbitration Agreement

There are several advantages to including an arbitration agreement in a contract, including:

  • Arbitration is faster and less expensive than civil litigation
  • Arbitrations are confidential, and there won’t be any public court records
  • Parties to arbitration can agree on their arbitrator who decides the case
  • More informal process than civil litigation
  • Rules of evidence don’t apply to arbitration

Arbitration agreements also have disadvantages that each party should be aware of before agreeing to an arbitration agreement.

  • Arbitration cannot be appealed, and the arbitrator’s decision is final
  • No jury trials
  • Limited discovery and exchange of information
  • Some arbitration agreements can be one-sided and favor the drafting party

Arbitration is usually faster and less expensive than civil litigation. Still, it is important to understand the rights you are waiving when you sign an arbitration agreement.

Meet some lawyers on our platform

Ryenne S.

127 projects on CC
View Profile

Bryan B.

97 projects on CC
View Profile

Gregory B.

82 projects on CC
View Profile

Samuel R.

32 projects on CC
View Profile

Arbitration Agreement Projects

Arbitration Agreement Drafting

An arbitration agreement must include important key terms to make it legally binding. It should define:

  • Which disputes will be arbitrated
  • Terms of arbitration
  • How the arbitration will be conducted

An attorney who is experienced with arbitration agreements will be able to draft a comprehensive arbitration clause to add to your contract.

Before beginning a drafting project, a lawyer will meet with their client to learn about the contract that requires an arbitration agreement. After gathering all important information and learning about the client’s arbitration goals, the lawyer can draft an arbitration agreement that protects the client’s interests.

Arbitration Agreement Review

If you are faced with signing an arbitration agreement, it is vital that you understand what you are signing. While arbitration does have advantages, those agreeing to arbitrate disputes are giving up several important legal rights.

Before agreeing to arbitration, it is recommended that you hire an attorney to review the arbitration clause. This is because contracts are often drafted in favor of the drafting party, which means an arbitration agreement could be one-sided or biased.

Hire an experienced attorney to review the agreement. They will ensure that the contract is fair and make sure the contract gives you rights like playing a role in choosing the arbitrator and the right to hire an attorney for representation in arbitration.

Arbitration Agreement Drafting Cost

Anytime a lawyer is hired for a project that takes time and legal expertise to complete, they will charge their client for their services. Depending on the fee arrangement, lawyers will often charge clients for consultations, the actual time spent working on the case or project, and any revisions.

Some lawyers will even charge for communication like emails or phone calls, so be sure to understand your fee agreement fully.

ContractsCounsel’s marketplace data shows the arbitration agreement drafting costs are $750 across all states and industries.

Arbitration Agreement Review Cost

Reviewing documents also takes a lawyer’s time and expertise, so you will incur legal fees if you want your arbitration clause to be reviewed before you sign.

ContractsCounsel’s marketplace data shows the average cost to review an arbitration agreement is $500 across all states and industries.

How Do Lawyers Charge for an Arbitration Agreement?

Hourly Rates for an Arbitration Agreement

An hourly rate fee structure is one of the more popular arrangements when hiring an attorney. When using an hourly rate structure, the attorney will bill the client at a set hourly rate for the number of hours worked on the project.

Billable hours can include:

  • Meeting with the client to discuss the content of the agreement
  • Drafting the contract
  • Revising the contract

ContractsCounsel’s marketplace data shows the average hourly rate for a contract lawyer ranges from $200 - $350 per hour.

Flat Fee Rates for an Arbitration Agreement

A flat rate billing structure is becoming more common for contract drafting projects. When using a flat fee rate, a lawyer will provide the client with a quote for the entire job. If the client agrees, they will pay upfront, and the lawyer will begin working on their case or project.

Flat fee billing benefits clients because they know exactly how much legal services will cost before paying the bill. However, before starting the project, a client must understand what’s included with the fee. Additional services like consultations and revisions may lead to more legal fees.

ContractsCounsel’s marketplace data shows the average flat fee rate for an arbitration agreement is $624.50.

Get Help with an Arbitration Agreement

Do you need help with an arbitration agreement project? If so, post a project in ContractsCounsel’s marketplace to receive flat fee bids from corporate lawyers to handle your project. All lawyers on the ContractsCounsel’s platform are vetted by our team to make sure you are provided with top tier service.

How ContractsCounsel Works
Hiring a lawyer on ContractsCounsel is easy, transparent and affordable.
1. Post a Free Project
Complete our 4-step process to provide info on what you need done.
2. Get Bids to Review
Receive flat-fee bids from lawyers in our marketplace to compare.
3. Start Your Project
Securely pay to start working with the lawyer you select.

Meet some of our Lawyers

David H. on ContractsCounsel
View David
5.0 (1)
Member Since:
March 10, 2022

David H.

Technology Contract Attorney
Free Consultation
Get Free Proposal
Michigan (virtual practice)
12 Yrs Experience
Licensed in MI
Western Michigan University - Thomas M Cooley Law School

Michigan licensed attorney. A compelling combination of technology, sourcing, sales, and legal experience. Over 20 years in technology positions negotiating technology engagements and contracts. General practice legal experience. Significant IT contracts experience (from IT sourcing/procurement) with the State of Michigan and Zimmer Biomet (Fortune 500). Excellent people, negotiation, and writing skills; keen eye for continuous improvement. Trusted business partner co-leading or supporting cross-functional integrated business/IT projects.

Michael C. on ContractsCounsel
View Michael
5.0 (1)
Member Since:
March 17, 2022

Michael C.

Managing Member
Free Consultation
Get Free Proposal
Remote
12 Yrs Experience
Licensed in NY, TX
Wake Forest University School of Law

A seasoned senior executive with experience leading the legal and compliance functions of healthcare entities through high-growth periods. I have experience managing voluminous litigation caseloads, while also handling all pre-litigation investigations for employment, healthcare regulatory, and compliance matters. Similarly, I have led multiple M&A teams through purchase and sale processes, including diligence and contract negotiations. Finally, I have extensive contract review experience in all matters, including debt and equity financing, healthcare payor contracting, vendor and employment agreements, as well as service and procurement agreements.

Rebecca R. on ContractsCounsel
View Rebecca
5.0 (2)
Member Since:
March 16, 2022

Rebecca R.

Attorney
Free Consultation
Get Free Proposal
St. Petersburg, FL/Nashville, TN
22 Yrs Experience
Licensed in TN
University of Tennessee College of Law

An experienced commercial contracts attorney with sales, leasing, NDA, SEC compliance, corporate governance, commercial real estate, and employment experience. Also well versed in internal and external policy document and manual creation.

Gregory F. on ContractsCounsel
View Gregory
5.0 (1)
Member Since:
March 23, 2022

Gregory F.

Attorney
Free Consultation
Get Free Proposal
Atlanta, Georgia
25 Yrs Experience
Licensed in GA, NY
University of Pennsylvania

Greg Fidlon has been practicing exclusively in employment law since 1998. He represents and advises clients in all aspects of the employment relationship. In addition to his litigation work, Greg regularly negotiates and drafts corporate policy handbooks, employment contracts, separation agreements and restrictive covenants. He also develops and presents training programs and has spoken and written extensively on labor and employment law topics.

Jessee B. on ContractsCounsel
View Jessee
Member Since:
March 14, 2022

Jessee B.

Attorney | Creative at Law
Free Consultation
Get Free Proposal
Tennessee
10 Yrs Experience
Licensed in TN
The University of Memphis—Cecil C. Humphreys School of Law | Juris Doctor, Law)

Whether you're thinking of starting your own business and not sure how to bring your vision to life, or you're a business owner, creative professional, creator, influencer, artist, musician, startup, nonprofit, or entrepreneur who wants to grow your business and protect your content and brand—I can help. Get experienced legal counsel, quality representation, and creative solutions customized to fit your unique needs. Services include: entity formation, business issues, planning, financing, and strategy; contract drafting, review, and negotiation; intellectual property protection; copyright and trademark filing; startup and nonprofit setup and guidance; real estate matters; property purchase, sale, and leasing; assistance with legal issues related to content creation, branding, design, writing, film, music, art, entertainment, social media, e-commerce, marketing, advertising, data and privacy compliance, and more. Questions? Let's work together. Reach out and say hello.

Stephanie C. on ContractsCounsel
View Stephanie
Member Since:
March 8, 2022

Stephanie C.

Attorney
Free Consultation
Get Free Proposal
Niceville, FL
3 Yrs Experience
Licensed in AL
Southern University Law Center

Alabama Licensed Attorney offering Freelance Services for Wills, Trusts, Probate, Family Law Documents, Criminal Matters, and Real Estate Closings.

Benjamin V. on ContractsCounsel
View Benjamin
Member Since:
March 10, 2022

Benjamin V.

Attorney
Free Consultation
Get Free Proposal
Colorado
4 Yrs Experience
Licensed in CO
Columbus School of Law, Catholic University of America

My practice involves counseling businesses and individuals on a variety of contracts, such as business formation, technology/IP, real estate, leases, and even domestic relations agreements. Much of my practice is dedicated to litigation. As such, I approach contract and transactional work from a litigation perspective by advising clients of the risks involved in failing to develop proper contracts. It takes more than knowledge of the law to be a good lawyer. A good lawyer is honest and forthcoming with clients and has a counseling ethos. And, to me, a good lawyer stands in the shoes of the client when considering how to best serve that client. Whether my client is a business or an individual, I am passionate about helping my clients understand their rights, responsibilities, risks, and possibilities.

Mark D. on ContractsCounsel
View Mark
Member Since:
March 15, 2022

Mark D.

Attorney
Free Consultation
Get Free Proposal
Dallas/Houston Texas
28 Yrs Experience
Licensed in CO, TX
Thomas M Cooley Law School

Partnering with business clients to keep their greatest asset - their employees - from becoming their biggest liability. Mark accomplishes this by working with in-house counsel and human resource professionals of several Fortune 50 companies, as well as many smaller public and privately held profit and not for profit organizations, to provide advice and counsel on the day to day employment and workforce practice issues encountered by those organizations. For over fifteen years Mark has been Board Certified in Labor and Employment Law by the Texas Board of Legal Specialization. He is licensed and practices in both Texas and Colorado and has focused his practice for the last 20 plus years on defending companies in employment and labor related matters. During this time Mark has had extensive experience in handling and responding to a wide range of local, state and federal employment issues that impact the management and operations of businesses in a wide range of industries. Mark's experience includes appearances before state and federal agencies and regulatory boards, litigation in both state and federal courts, defense of class actions and appearances before courts of appeal. While Mark regularly handles matters in litigation, he has a high regard for handling every issue with the best interest of the client’s business. Mark is a published author and regular speaks on labor, employment and workplace practice topics. Whether it be an investigation by the Occupational Safety and Health Administration (OSHA), the Wage & Hour division of the U.S. Department of Labor, or other state agency; an Equal Employment Opportunity Commission (EEOC) or state agency charge claiming a violation of local, state or federal employment or labor laws; or the need for direction on a hiring, termination or business operational issue involving employees, Mark has extensive experience in handling these and many other employment and labor issues.

Joann H. on ContractsCounsel
View Joann
Member Since:
March 23, 2022

Joann H.

Attorney at Law
Free Consultation
Get Free Proposal
Miami
23 Yrs Experience
Licensed in FL, NY
University of Buffalo School of Law; SUNY at Buffalo School of Law

I practiced law for the past 22 years in Immigration, Bankruptcy, Foreclosure, Civil Litigation, and Estate Planning. I am interested in downsizing to a more workable schedule to allow the pursuit of other interests.

Pankaj R. on ContractsCounsel
View Pankaj
Member Since:
March 25, 2022

Pankaj R.

Owner
Free Consultation
Get Free Proposal
Los Angeles/Inland Empire
14 Yrs Experience
Licensed in AZ, CA
University of Arizona Rogers College of Law

I advise clients in the areas of business, trademarks, real estate, employment, and finance. My overarching goals are to unite creative people and companies to assist them in making sound legal and business decisions. I have been fortunate enough to build a fast-growing, 21st-century law firm with an amazing staff by my side. Our focus is not just on providing invaluable legal insight but creating a better all-around client experience. We provide unique subscription pricing and flat-fee options for our clients, providing billing transparency and enhanced value to all of our wonderful clients. Focus areas: contract drafting, negotiations, research, trademarks international law, entertainment, business development, entity choice; business: manager, team builder, leader, motivator. Speaking Engagements: National Business Institute (NBI) - "Business Contracts 101"

Find the best lawyer for your project

Browse Lawyers Now

Want to speak to someone?

Get in touch below and we will schedule a time to connect!

Request a call