Arbitration
A private decision-maker resolves the dispute instead of a court.
What it means
Arbitration resolves disputes before one or more private arbitrators instead of a judge or jury. The arbitrator's decision is usually binding, with only very narrow grounds for appeal. Arbitration is often faster and more private than court, but it can carry significant filing fees, limits discovery, and — where the clause says so — may waive the right to a jury trial or class action.
Why it matters before you sign
Agreeing to arbitration means giving up most of the court system before any dispute exists — worth understanding, not just skimming, especially in take-it-or-leave-it contracts.
In a contract, it looks like this
Any dispute arising out of this agreement will be resolved by binding arbitration before a single arbitrator, and each party waives its right to a jury trial.
This definition is a general, educational explanation — not legal advice. XOsign provides AI-assisted document tools and does not provide legal advice; consider consulting a qualified attorney for guidance on your specific situation. Requirements vary by state.
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