Arbitration is a form of legal mediation in which parties in a contract sign a written contract, which may or may not contain legal clauses.
The arbitration contract then becomes a binding contract for the parties to enforce, which means it becomes a legal document, like a legal contract, and is usually binding.
For example, a buyer’s agreement that requires buyers to agree to pay a price is binding if the buyer accepts the agreement.
Arbitration contracts are usually designed to avoid conflicts of interest by the parties.
But some contracts have clauses that give the arbitrator the right to disqualify the party in question.
If a dispute arises, the arbitrators can use that evidence to determine the parties’ position, or even reach a verdict.
Arbitrators may be able to award a lot of money or even the right for the person making the contract to pay some amount to the arbitration company.
Arbitrator’s arbitrations can also be used as a tool to resolve disputes, like those that arise between business owners and suppliers of goods and services.
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