Arbitration Agreement Template

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An Arbitration Agreement is a legal contract between two parties that establishes arbitration as the method for resolving future disputes instead of going to court. It is used by employers, businesses, or contractors to save time, reduce legal costs, and ensure private dispute resolution.
ARBITRATION AGREEMENT

This Arbitration Agreement (the "Agreement") is entered into on   (the "Effective Date") by and between

 , an individual having their usual place of living at   (the "First Party"), and

 , an individual having their usual place of living at   (the "Second Party"), collectively referred to as the "Parties" and individually as the "Party".

WHEREAS the Parties are bound by a   entered into on    (the "Contract"), which governs the rights, responsibilities, and obligations between them;

WHEREAS the Parties acknowledge and agree that any disputes or controversies arising out of or in connection with the Contract shall be resolved in accordance with the arbitration provisions contained therein;

NOW, THEREFORE, in consideration of the mutual promises and obligations set forth herein, and upon other valuable considerations, the receipt and sufficiency of which is hereby acknowledged, the Parties have agreed as follows:

SUBJECT OF THE AGREEMENT. This Agreement pertains to the arbitration of all disputes, claims, or controversies arising from or related to the interpretation, implementation, breach, termination, or validity of the Contract (the "Dispute"). The arbitration shall be carried out by   according to its rules. The arbitration shall be held in  ,   State.

The Dispute shall be submitted to one arbitrator (the "Arbitrator"). 

The arbitration shall be held by  .

 The Parties agree that the responsibilities of the Arbitrator will be as follows:

 

The Arbitrator's decision shall be final and binding on all Parties unless otherwise set forth in this Agreement.

INITIATION OF ARBITRATION. When the Party wants to initiate an arbitration under this Agreement, the initiating Party must provide the other Party with the written notice of claim along with all supporting materials within   days after filing the claim. The initiating Party bears full responsibility for adhering to all federal, state, and local legal requirements and must comply with the chosen arbitration rules. The arbitrability of the notice of claim is contingent upon compliance with the statute of limitations.

PREHEARING CONFERENCE. Before initiating arbitration proceedings, the Parties, in collaboration with the appointed Arbitrator, shall convene a prehearing conference to facilitate the efficient and orderly resolution of the Dispute. The prehearing conference shall be held at a mutually agreed-upon time and location or conducted virtually, as determined by the Parties.

The critical objectives of the prehearing conference shall include but not be limited to:

  • Scheduling of hearing: The Parties shall agree upon the date, time, and duration of the arbitration hearing, considering the availability of all participants.
  • Procedural matters: The Parties may address and resolve any procedural issues, such as the exchange of documents, the submission of evidence, etc.
  • Witnesses and experts: The Parties shall disclose the names of witnesses and experts they intend to call during the arbitration hearing.
  • Language and translation: If necessary, the Parties may address the language of the proceedings and any translation services requirements.
  • Confidentiality and protective measures: The Parties may agree on the terms of confidentiality and any protective measures to safeguard sensitive information during the arbitration.
  • Other:  

THE HEARING. The arbitration hearing shall take place as specified above in this Agreement. It shall be held in  . After the hearing, the Arbitrator shall render a final and binding decision based on the applicable law and arbitration rules. The decision shall be communicated to the Parties in writing.

DISCOVERY DISPUTE. In the event of a discovery dispute, the Parties shall initially seek resolution through good-faith discussions. If the matter remains unresolved, it shall be promptly referred to the Arbitrator. The Arbitrator's decision on the Dispute shall be final and binding, ensuring an efficient arbitration process. The Parties agree to cooperate and comply with the Arbitrator's rulings throughout the proceedings.

ARBITRATION AWARD. If the applicable law requires confirmation of the arbitration award in a court of competent jurisdiction, the prevailing Party may seek such confirmation. The Party seeking confirmation shall submit the award and any necessary documentation to the relevant court within the time frame specified in the applicable law. Upon obtaining judicial confirmation of the award, the prevailing Party may seek enforcement of the confirmed award in any court of competent jurisdiction.

APPELLATE ARBITRATION. Both Parties shall have the right to initiate the appellate arbitration in case of the Arbitrator's material and prejudicial error of law or determinations of fact that are erroneous during the arbitration. The Party initiating the appellate arbitration bears full responsibility for compliance with all federal, state, and local legal requirements and must comply with the rules of the chosen arbitration.

ARBITRATION COSTS AND FEES. The costs and fees associated with the arbitration proceedings shall be allocated as follows:

  • Filing fees: The Party initiating the arbitration shall be responsible for paying any filing fees required by the chosen arbitration institution;

  • Arbitrator's fees: The Arbitrator's fees and expenses, including those charged by the arbitration institution for the Arbitrator's services, shall be shared equally between the Parties unless the Arbitrator determines a different allocation based on the circumstances of the case;

  • Legal fees and expenses: Each Party shall bear its legal fees and expenses incurred in connection with the arbitration, regardless of the outcome, unless otherwise awarded by the Arbitrator in the final award or as required by applicable law;

  • Administrative fees: The Parties shall equally share any administrative fees charged by the arbitration institution for managing the arbitration process.

The Parties acknowledge their obligation to promptly pay their respective shares of the arbitration costs and fees as determined by the Arbitrator or the arbitration institution. Failure to make timely payments may be addressed by the Arbitrator, and any resulting consequences may include the suspension or termination of the arbitration proceedings.

The Parties agree to keep detailed records of their costs and expenses related to the arbitration and, upon the Arbitrator's request, provide a breakdown of such costs for review.

NOTICE. Any notice or communication required under this Agreement shall be sufficiently given if delivered personally or by certified mail, a return receipt requested to the address set forth in the opening paragraph or to such other address as one Party may have furnished to the other Party in writing. It may also be delivered to the email address set forth below.

If to the First Party:  ;

If to the Second Party:  .

Either Party may change the registered mail or email address for receipt of notices by giving written notice to the other Party.

 

GOVERNING LAW AND DISPUTE RESOLUTION. This Agreement shall be governed by and interpreted in accordance with the laws of the State of  , and any disputes resulting from or related to this Agreement shall be exclusively resolved by the courts of the State of  .

 

SEVERABILITY. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement.

 

ENTIRE AGREEMENT. This Agreement substitutes the entire understanding between the Parties and supersedes any prior oral or written agreements.

WAIVER. The failure of any Party to enforce a particular provision of this Agreement shall not constitute a waiver of their right to enforce that provision in the future.

 

AMENDMENTS. This Agreement may be amended or modified only by a written agreement signed by both Parties. Any amendments to this Agreement shall be binding if they are in writing and signed by both Parties.

BINDING EFFECT. This Agreement shall be binding upon the Parties and their respective successors and assigns.

ANNEX.   dated  .

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date.

THE FIRST PARTY

THE SECOND PARTY

 

 

 , USA
 , USA

 

 

__________________________________

(Place for signature)

__________________________________

(Place for signature)

 

 

 

 

 
Written by Megan Thompson - Reviewed by Jonathan McGill

Template Description

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business people shaking hands and agreeing on a work matter

What Is an Arbitration Agreement?

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An arbitration agreement is a written contract between two people or businesses. It says that if a legal problem comes up, they will handle it through arbitration instead of filing a lawsuit in court.

Arbitration takes place outside of the courtroom, where a private, neutral person (called an arbitrator) listens to both sides and then makes a decision. This decision is usually final and binding.

Many employers include an arbitration agreement sample when someone starts a new job. Companies often prefer arbitration because it saves time, avoids court fees, and keeps matters private.

Why Should I Sign an Arbitration Agreement?

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Signing a sample arbitration agreement can have some benefits, especially if you want a faster and less stressful way to work out a disagreement. Here are a few reasons why some people choose to sign one:

  • It helps avoid costly court battles; 

  • It protects your privacy — arbitration is not public like court trials;

  • It can feel less formal and easier to handle than going to court;

  • It sets clear rules ahead of time, so there's less confusion later.

The goal is to agree on what to do if things don't go as planned — which helps both sides feel more secure.

Can I Sue If I Signed an Arbitration Agreement?

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Usually, no. If you sign an arbitration agreement form, you are agreeing not to sue in court. Instead, you must solve any legal disagreements through arbitration.

There are a few rare exceptions where a court might allow a lawsuit, such as:

  • The agreement is not clear; 

  • Someone signed under pressure or without understanding it; 

  • The issue involves something serious like a criminal act.

But in most cases, once you sign, you give up your right to take the matter to court — even if you later change your mind. Always keep a copy of the arbitration agreement PDF to have legal evidence in case something goes wrong.

Can I Be Fired for Not Signing an Arbitration Agreement?

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In most states, an employer has the legal right to ask you to sign an arbitration agreement. That means they can say, "You must sign this if you want to work here." Ask the employer to provide a sample arbitration agreement PDF so that you can study the document thoroughly and discuss the points that worry you.

However, in some states, like Califormia, laws protect employees who choose not to sign. An employer may not be allowed to fire or refuse to hire you just because you disagree with arbitration.

State Law

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The Federal Arbitration Act (9 U.S.C. § 1-16 “FAA”) governs arbitration agreements in contracts involving interstate commerce and applies in both federal and state courts. FAA requires that arbitration agreements be in writing to be enforceable.The form can vary; it can be an arbitration clause in a commercial contract, a stand-alone arbitration agreement, or other type of written agreement. 

Chapter 1 (9 U.S.C. § 1-16) stipulates general provisions applicable to arbitration agreements involving maritime, interstate, and foreign commerce.

The 1958 Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the "New York Convention") is implemented in Chapter 2 (9 U.S.C. 201-208), which governs any contractual or non-contractual relationship between parties that is deemed to be commercial in nature, unless both parties are citizens of the United States and the relationship involves property located abroad or has some other reasonable connection to one or more foreign states.

Chapter 3 (9 U.S.C. §§ 301-307) implements the 1975 Inter-American Convention on International Arbitration (“Panama Convention”). Where both the New York and Panama Convention could apply to the enforcement of an arbitral award, the NY Convention applies, unless the parties indicate the Panama Convention should apply. 

The US has not enacted the United Nations Commission on International Trade Law (“UNCITRAL”) Model Law, however several states have enacted statutes based on Model Law, namely: California, Connecticut, Florida, Georgia, Illinois, Louisiana, Oregon, and Texas. 

Other Regulations

  • California regulation: California Code of Civil Procedure, Part 3, Title 9 – Arbitration, Chapter 2 – Enforcement of Arbitration Agreements. 
  • Texas regulation: Texas Statutes/Civil Practice and Remedies Code, Title 7 – Alternative Methods of Dispute Resolution, chapter 171 – General Arbitration, Subchapter C- Arbitration. 

Related Documents

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If you're unsure about your rights, ask a legal professional or your local labor agency before signing the document. In case you do not know how to fill in the template, check the arbitration agreement examples available online.

Also read

What Is an Arbitration Agreement?
What Is an Arbitration Clause in Retainer Agreements?
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