Arbitration Agreement Template

Arbitration Agreement Template

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What Is an Arbitration Agreement?

An Arbitration Agreement is a legal contract upon which parties decide that if there will be any disputed claims between them they won't go to a court of law to settle them. They will solve any issues by binding arbitration. The purpose of the document is to make it clear that the parties are giving up their right to sue each other and agree to solve any potentially problematic situations out of court. In this case, if the parties who have entered into an agreement can't resolve their dispute themselves, they are supposed to submit it to a neutral party - an arbitrator, who will make a decision, while in usual cases without an agreement, it would be a judge who would decide such issues.

Alternate Name:

  • Arbitration Contract.

These kinds of agreements are used in many situations. For example, when an individual has received a job. In this case, an employer can offer them to sign an Employee Arbitration Agreement, and they can only agree to bring any claims to an arbitrator. Usually, employers use a standard Arbitration Agreement form which is mandatory to be signed by all employees.

You can download an Arbitration Agreement template through the link below or create your own document with our online form builder.


How to Write an Arbitration Agreement?

Writing an Arbitration Agreement is a straightforward process, however, there are a few things that a filer should pay attention to. The agreement is a legal document that follows a certain structure. A mutual Arbitration Agreement consists of several parts which include the following:

  1. Introduction. In the first part of the document, a filer should state the names of the parties that are entering the agreement.
  2. Subject. Here parties designate that they have agreed to resolve any occurring disputes by binding arbitration.
  3. Arbitration Procedure and Arbitrator. In a binding Arbitration Agreement, there must always be a part where applicants designate how they will choose an arbitrator that will resolve their claims. They must also designate if they would like to work with any particular arbitration associations and what will happen if they cannot agree on an arbitrator.
  4. Governing Law. Filers use this section of the document to state the law which will be applied in the proceedings.
  5. Costs. Applicants must state in the agreement who will pay the costs of the procedure. Usually, they are split between the parties, unless the arbitrator states otherwise.
  6. Acknowledgment and Signatures. In the last part of the document, the parties must designate that they have understood the meaning of signing this contract, that they agree to all of its terms, and understand the consequences. After that, they should sign it.

Filers can add other parts to the agreement they are entering, for example, they can list the documents each party is allowed to submit to the arbitrator or require a stenographic record of the proceeding.

What Happens if I Don't Sign an Arbitration Agreement?

The consequences of refusing to sign an Arbitration Agreement can vary, however, it all depends on the details of the situation an individual is in, as well as the state where they reside. Before coming to any conclusions it is best to review the agreement carefully and pay attention to any limitations listed there. It might be helpful to schedule a meeting with a local lawyer who is well-informed about the state laws concerning Arbitration Agreements.

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