What do parties agree to in arbitration?

Parties in arbitration agree to have a binding decision made by a private arbitrator. This means that they choose to resolve their disputes outside of the traditional court system, opting for a process where an impartial third party, the arbitrator, reviews the evidence and arguments presented by both sides before making a decision. This decision is usually enforceable by law, similar to a court judgment, providing a final resolution to the dispute that both parties are legally bound to accept.

Choosing arbitration often appeals to parties because it can be a faster, more confidential process compared to court proceedings. It’s also important to note that the arbitration process is less formal and can be tailored to the specific needs of the parties involved, making it a flexible option for dispute resolution.