Arbitration, one form of alternative dispute resolution, is an integral part of the fabric of many agreements. How an arbitration clause is drafted can have a significant impact in the event of a dispute involving the agreement. I suggest that, in most cases, the arbitration provision should be given more consideration by the parties during the contract negotiations.

The arbitration provision is one way to manage your legal risks, so as this article discusses, you will want to be mindful when drafting ADR clauses, avoid the “it’s just boilerplate” trap, and be prepared for the contract negotiations of the ADR clause.