Arbitration Clause

Plain-English definition

A contract term that may require or permit a dispute to be decided in arbitration instead of court.

Why this term matters

Whether an arbitration clause applies can depend on the agreement, parties, waiver issues, and procedural posture.

Do not confuse it with

Arbitration is not the same as informal settlement negotiation.

What to check in your papers

• Where the term appears and who issued the document.
• Whether the document states a date, deadline, hearing, or response requirement.
• Whether an official form or local court rule is referenced.