What is Arbitration Agreement Review?
An arbitration agreement is a legal contract in which parties have agreed to resolve a dispute outside of court by going to arbitration. This keeps their disputes private and it can be less time-consuming than going to court.
Before agreeing to the terms in an arbitration agreement, you should review it closely.
Read the rest of this article to explore what key terms are the most important to review, how to review the agreement, and how a qualified lawyer can assist you with the contract-review process to better protect your interests.
What Key Terms Should You Review in an Arbitration Agreement?
When reviewing an arbitration agreement, keep an eye out for the following essential terms:
- Binding decision. Consider if the arbitration agreement will include an arbitrator making a final, binding decision as this affects your ability to appeal.
- Selection of arbitrators. Check that the agreement specifies how arbitrators are selected, such as if this occurs via mutual agreement. This section is important to ensure a fair, neutral selection.
- Scope of dispute. For clarity, the agreement must explain what disputes will be included in the arbitration process.
- Rules. Detail the rules and processes for the arbitration, such as initial filings and evidence presentation.
- Venue. Parties should have clarity about exactly where the arbitration will occur, whether it’s a physical or virtual venue.
- Fees. Explain how arbitration expenses are shared between parties. This should include details about arbitrator fees.
How Do You Review an Arbitration Agreement?
When reviewing an arbitration agreement, it’s important to provide details so that there’s clarity and you can avoid disputes. Here are some things to consider.
Fairly Distribute Costs
You want to check that all expenses are fairly distributed between parties so that one party isn’t responsible for too many financial obligations. A fair, balanced agreement prevents disputes.
Confirm Compliance with Local Laws
It’s important to consult all relevant state laws during the review of an arbitration agreement. This maintains legal validity. Hiring a lawyer can help you with this task to ensure compliance.
Include Arbitration Consent
It’s important that the agreement clearly states that parties agree to go to arbitration to resolve their dispute. They should waive the right to take disputes to court because they’re choosing arbitration instead. Check that this section is written in simple wording so that mutual consent is clear.
Consider the Dispute Scope
Your agreement should specify the type of disputes or disagreements that will be covered during the arbitration process. You must check that excluded issues are also mentioned to prevent confusion or arbitration challenges.
Clarify the Confidentiality Clause
Since arbitration is more private than going to court, proceedings must remain private. Protect sensitive business information, such as trade secrets, and personal data by including solid provisions if these are not already present.
Review the Finality Clause
Many arbitration agreements will have a finality clause that specifies the arbitrator’s final decision is legally binding. This restricts one’s ability to appeal.
Check the Arbitration Location
If the location where arbitration will take place is in a distant or otherwise inconvenient place, it could make it more challenging to pursue a claim. The location will also determine what jurisdiction’s laws apply to the arbitration agreement, so it should be chosen carefully.
Do You Need to Hire a Lawyer to Review an Arbitration Agreement?
Hiring a lawyer to look over your arbitration agreement is a smart move as a lawyer is experienced in drafting and reviewing such contracts to protect your interests and keep the agreement legally enforceable.
A lawyer can help you during an arbitration agreement review by:
- Explaining both parties’ rights so that there’s no confusion.
- Checking legal enforceability for any provisions that could be challenging to enforce.
- Considering the arbitration scope so that they can ensure clarity over what disputes must go to arbitration.
- Examining how arbitrators are selected so that they avoid any unfair processes.
- Reviewing all fees and expenses so that they can be distributed fairly between parties.
- Negotiating any terms of the agreement so that they are favorable for both parties prior to signing the document.
- Making revisions to the arbitration agreement if required. This prevents hidden risks or vague wording that can result in challenges.
Where to Find a Lawyer for Arbitration Agreement Review
If you need to hire a lawyer to review your arbitration agreement, you don’t have to take lots of time out of your schedule to find one or settle for lawyer recommendations from people you know. By using an online legal platform, you can access a network of qualified lawyers who are experienced to help you, without having to call law firms or leave your home.
ContractsCounsel is one of the largest online legal marketplaces that gives you access to a curated network of vetted lawyers. All lawyers on the platform have years of experience in contract drafting and review.
If you want to ask a lawyer on the platform to review your arbitration agreement for a flat fee, here are the easy steps to follow:
- Go to the ContractsCounsel marketplace.
- Post your project for free. Include a few details to help you find the most suitable lawyer.
- Wait for bids. Without having to search for a lawyer on the platform, you’ll receive multiple bids from lawyers who are ready to help you.
- Review the lawyers’ profiles. You should take time to explore the platform’s lawyer data, such as their location, client ratings for previous projects, expertise, and credentials.
- Connect with a lawyer you think is best suited to your requirements and hire them to review your arbitration agreement.
