Yes, it is possible for business contracts to include a clause which requires all disputes to be resolved by arbitration. This is becoming increasingly popular.
You can save thousands of dollars, as well as many days of valuable time, by using arbitration instead of going to Court. Arbitration involves both parties to the dispute appointing an independent arbitrator to decide the outcome. The arbitrator will often be an expert in the type of business or industry involved.
It can be easy, however, for these types of clauses to cause further problems if they are not drafted properly. Before including a requirement for arbitration in your contract, you should speak to a lawyer to ensure that the clause does what you want it to do, without unwittingly causing undue delay and uncertainty.
The information contained in this article is intended to be of a general nature only and should not be relied upon as legal advice. Any legal matters should be discussed specifically with one of our lawyers.
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For further information contact
Simon Matters
Simon is a Senior Associate of Sharrock Pitman Legal.
He is an Accredited Commercial Litigation Specialist (accredited by the Law Institute of Victoria) and deals with Litigation, Mediation of Disputes, and Law for Charities & Not for Profits. For further information, contact Simon Matters on his direct line (03) 8561 3324.
