Arbitration Agreements

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Commonly Asked Questions about Arbitration Agreements

What is meant by an arbitration agreement?

Section 7. Arbitration agreement. Previous Next. (1) In this Part, arbitration agreement means an agreement by the parties to submit to arbitration all or certain disputes which have arisen or which may arise between them in respect of a defined legal relationship, whether contractual or not.

Should I agree to an arbitration agreement?

If you already have claims against your employer when you are asked to sign the agreement, you should absolutely talk to a lawyer before signing. After all, an arbitration agreement gives up your right to sue in court, and that right is much more valuable when you have an actual claim to make against your employer.

Are arbitration clauses legal in Canada?

By and large, Canadian courts continue to show resolve in ensuring that arbitration agreements are enforced. There are, however, circumstances in which courts may find them unenforceable.

Should you agree to arbitration in a contract?

Arbitration might be the right choice for some cases. Limited discovery rights and costs might be useful when less is at stake. Arbitration might feel less adversarial, which could be an advantage where ongoing relationships are hoped to be preserved. Arbitration lends some confidentiality.

What happens if you dont agree with arbitration?

The arbitrators decision can give parties a realistic idea of the outcome of their case. If neither party appeals the decision, it will be binding, like an order by a judge. However, a party unhappy with the arbitrators decision can request a new trial before a judge.

Should I reject an arbitration agreement?

Because arbitration prevents your claims taken seriously, theres no upside to remaining in a mandatory arbitration agreement. Even if you opt out, you can still choose arbitration to settle a dispute, so theres no downside to opting out.

What is an example of an arbitration agreement?

Example 1. Arbitration. All claims and disputes arising under or relating to this Agreement are to be settled by binding arbitration in the state of [insert state in which parties agree to arbitrate] or another location mutually agreeable to the parties.

Should I opt out of an arbitration agreement?

Even if you dont currently have a dispute with the company, it is a good idea to opt out of the forced arbitration clause to preserve your options. You can always agree later to use an arbitrator to resolve any dispute. Moreover, if you have opted out, you will have more negotiating power if there is a problem.