Arbitration Clause
Category: Legal
Definition (plain English)
A contract clause that sends disputes to arbitration instead of ordinary court litigation, usually naming rules, seat, language, and number of arbitrators.
Why it matters commercially
The clause affects dispute cost, enforceability, interim remedies, language, venue, and whether a small cross-border claim is commercially worth pursuing.
Example
A buyer accepted arbitration only after the contract named ICC rules, seat, language, and emergency relief path instead of a vague dispute sentence.
Common mistake
Writing only that disputes go to arbitration without naming institution or rules, seat, language, governing law, arbitrator count, and enforcement path.
Use this in CommerceKit
Payment Terms Cost / Risk Calculator
Use tool →