arbitration clause
An arbitration clause, also known as an alternative dispute resolution (ADR) clause, requires the contracting parties to resolve disputes arising out of or concerning the contract through arbitration as opposed to mediation or litigation.
Additional Information
Usually, each party appoints an arbitrator. The two arbitrators select a third or an umpire, and a majority decision of the three becomes binding on the parties in the arbitration proceedings.
Synonyms
alternate dispute resolution clause
