This legal contract document helps to find a solution for the dispute outside the courtroom. This alternative legal dispute resolution is flexible, convenient and effective in nature. In order to make this non-judicial process more effective and fruitful, the agreement document has to be framed authentically and with utmost precision. Certain factors have to be followed while formulating an arbitration agreement. They are as follows.
Arbitration has turned out to be a viable alternate to the litigation owing to the fact that it is less time consuming than a lawsuit and cost-saving. However, this arbitration agreement document is of two types- binding and non-binding. Binding agreement document signifies that the arbitration process would be supervised and performed under legal advocacy whereas the parties involved in non binding agreement can opt for filing a lawsuit if the arbitration process seems unsatisfactory.