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Disputes are inevitable in the business world. In ideal situations, small disagreements may be readily resolved between parties directly. However, larger disagreements may grow and give way to hard feelings, delayed deals and even lost business. The court system was designed to resolve issues such as these by allowing the parties to argue their case before a judge or jury. Unfortunately, courthouse resolution has become an increasingly costly and inefficient option for many businesses to consider. Even the simplest of cases can cost hundreds of thousands of dollars and take years to conclude. One way to avoid this process is to submit the dispute to arbitration.
When parties want to arbitrate their issues, an arbitration agreement ( sometimes called a "submission agreement") can be drafted. This agreement is then submitted to an arbitrator selected by the parties. Arbitration takes the place of a trial and the parties relinquish their rights to go to court in exchange for a quick and cost-effective resolution. A LegalZoom Arbitration Agreement will minimize confusion, misunderstanding, error, and clearly sets forth the parties' respective expectations and obligations. Once the agreement is signed, each party can again focus on resolving the dispute and returning to business as usual.
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