All About Arbitration Clauses in Contract Drafting and Review – Jacksonville Business Attorneys Offer Tips

Before you sign that business contract, have it examined by an attorney experienced in contract drafting and review, Jacksonville's Mathis & Murphy, P.A. recommends.
Business contracts go sour every day. And without a clearly stated arbitration clause, things can get even uglier. Yet, this item is one of the most overlooked, say attorneys specializing in contract drafting and review. Jacksonville’s Mathis and Murphy, P.A. offers tips for making sure your agreement includes all the necessary features.
An arbitration clause specifies that parties involved will settle business or contract disputes outside of the courts via arbitration, which involves an objective third-party “arbitrator” or “arbiter.” Typically, the arbiter will hear each side of the dispute and make an informed decision, by which the contract parties agree to abide. It’s a way to help keep costs down for the involved parties and unburden the court system. And many executives prefer arbitration because arbitral proceedings and awards are kept confidential, whereas legal proceedings in the courts generally are considered matters of public record unless sealed by a judge.
Care must be taken in writing arbitration clauses so that they’re neither too broad nor too narrow. Often, even strongly written clauses are contradicted in contracts by references to a court having jurisdiction over any disputes. And narrowly-written clauses might be interpreted to exclude certain types of disputes from arbitration, opening the door for expensive and drawn-out court cases. Other necessary elements include:
- The location of the arbitration, particularly if parties reside in different cities or states;
- The governing laws that might impact dispute outcomes;
- The type of notice necessary to invoke arbitration;
- And clear direction as to who will cover arbitration costs.
If you’re crafting a business contract – no matter whether you’re a high-dollar executive in a large company or a small business entrepreneur – it’s highly recommended you get professional legal assistance in contract drafting and review. Jacksonville’s Mathis and Murphy, P.A. has helped hundreds of clients craft clear, concise and enforceable business contracts of all types including employment agreements, sale of goods agreements, business purchase orders, confidentiality agreements and real property or facility leases. Call 904-396-5500 to schedule a consultation with one of our experienced business and contract attorneys today.









