Legal Glossary

Definition of Arbitration

Arbitration is an alternative dispute resolution process that allows two or more parties to resolve disputes, such as contract disagreements, outside of court.

It involves having a neutral third-party arbitrator who listens to arguments from both sides and then issues a binding decision, which is usually enforceable in a court of law.

Compared to litigation, arbitration is often quicker, cheaper, and more private.

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