Legal Concept Explained
Arbitration
“Resolving legal disputes privately with a hired judge instead of going to public court.”
Formal Legal Definition
A private dispute resolution mechanism where an independent third party (an arbitrator) hears evidence and renders a binding legal decision, circumventing public court litigation.
How It Appears in Actual Contracts
'Any dispute arising under this Agreement shall be resolved through binding confidential arbitration administered by the American Arbitration Association under its Commercial Rules.'
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