An arbitration clause is a contract term that says certain disputes should be resolved by arbitration instead of by a court.
Arbitration clauses often cover which disputes are included, where the arbitration takes place, which rules apply, how arbitrators are appointed, and whether the decision is binding.
The effect of an arbitration clause can vary between countries and types of contract, so it should be reviewed before signing.
This definition is for general information only and is not legal advice.