Arbitration Clause
Clear mutual promise to submit covered disputes to arbitration, including the phrase 'agree to arbitrate' and a defined scope of covered claims to prevent later ambiguity.
Arbitration agreements provide predictable dispute resolution, limit discovery costs, and can shorten dispute timelines; when executed with clear consent they are generally enforceable under ESIGN and UETA frameworks. They also let parties select governing law, arbitration rules, and arbitrator qualifications to manage risk and preserve confidentiality.
Various organizations and individuals include arbitration provisions in commercial, employment, consumer, and service contracts when parties want an alternative to litigation.
A company's General Counsel or authorized counsel usually reviews arbitration language and signs on behalf of the entity. Their signature confirms legal authority to bind the organization and should be accompanied by a clear title line and date to avoid later challenges.
A corporate officer such as the CEO or COO may execute the agreement when corporate bylaws delegate signature authority. Include the officer's title and a corporate resolution reference when authority is not obvious from the signer’s role.
Clear mutual promise to submit covered disputes to arbitration, including the phrase 'agree to arbitrate' and a defined scope of covered claims to prevent later ambiguity.
Specify which claims are subject to arbitration (e.g., contract disputes, tort claims), and explicitly exclude any matters the parties want reserved for courts, such as injunctive relief if needed.
Identify the arbitration rules or provider (for example, AAA or JAMS) and whether the parties adopt those rules in whole or in part for procedure and discovery limits.
State how arbitrators are chosen, the number of arbitrators, qualifications required, and the process for resolving selection deadlocks to ensure impartial decision-makers.
Designate the seat/venue of arbitration and the governing substantive law to determine procedural and substantive legal standards applied by the arbitrator.
Allocate arbitration costs, filing fees, and attorney-fee arrangements; include fee-shifting rules or references to provider schedules to set expectations and manage financial risk.
| Workflow configuration field mapping table | Setting | Example |
|---|---|
| Signing Order | Sequential | Authorized signatory first |
| Authentication Level | Email or SMS | SMS code for added assurance |
| Document Retention | Audit trail | Retain for agreed retention period |
| Delivery Method | Email link | Signed PDF to all parties |
Use a platform that supports reliable audit trails, role-based signing order, and appropriate signer authentication for enforceability.
Record the exact MM/DD/YYYY effective date.
Observe any contract-specified timeframes for arbitration notices.
File any enforceability challenge promptly following execution.
Follow arbitration provider filing and payment deadlines.
Retention begins from the execution or last effective date.
All clauses finalized and party names confirmed.
Counsel verifies enforceability and compliance.
Authorized signers sign and date the agreement.
Store executed copy and audit trail securely.
Company digitized lease arbitration clauses for remote closings to reduce delays.
Healthcare provider used electronic agreements to capture patient consent for arbitration alongside treatment agreements.
| signNow | DocuSign | Adobe Sign | PandaDoc | HelloSign | |
|---|---|---|---|---|---|
| Starting Price | $8/user/mo | $15/user/mo | $14/user/mo | $19/user/mo | $15/user/mo |
| Free Trial | 7-day trial | Varies | Varies | Varies | Varies |
| Bulk Send | Available | Varies | Varies | Varies | Varies |
| Audit Trail | Yes | Yes | Yes | Yes | Yes |
| HIPAA Compliant | Yes | Varies | Varies | Varies | Varies |