Sample California Arbitration Agreement

If you`re planning on doing business in California, it`s essential to have an arbitration agreement in place. An arbitration agreement is a legally binding contract that outlines the process for resolving disputes between two parties without going to court.

A well-crafted arbitration agreement can save time and money for both parties involved in a dispute, as it typically avoids the costs and delays associated with litigation. Additionally, arbitration is often a more informal process that allows both parties to come to a mutually agreeable resolution.

To help you get started, we`ve put together a sample California arbitration agreement that you can use as a template for your own business.

Sample California Arbitration Agreement

This Agreement to Arbitrate Disputes (“Agreement”) is made and entered into between [Your Company Name], (“Company”) and [Employee/Contractor Name], (“Employee/Contractor”), collectively referred to as the “Parties.”

1. Scope of Agreement

The Parties agree that any and all disputes arising out of or in connection with this Agreement, or any other agreement between the Parties, or any services performed by the Employee/Contractor for the Company, shall be resolved by binding arbitration, pursuant to the rules of the American Arbitration Association (“AAA”) and California law.

2. Arbitration Procedures

The arbitration shall be conducted by a single arbitrator, who shall be selected by mutual agreement of the Parties. If the Parties cannot agree on an arbitrator, the AAA shall select an arbitrator in accordance with its rules.

The arbitration shall take place in the County of [County Name], California, unless otherwise agreed upon by the Parties. The Parties agree to comply with the AAA’s rules and procedures for conducting the arbitration.

The arbitrator shall have the authority to grant any relief that a court of law could award, including injunctive or equitable relief, provided that such relief is necessary to redress the harm giving rise to the dispute. The arbitrator’s award shall be final and binding on both Parties.

3. Modification and Severability

This Agreement may not be modified except in writing, signed by both Parties. If any provision of this Agreement is held to be invalid or unenforceable by a court of competent jurisdiction, the remaining provisions shall remain in full force and effect.

4. Governing Law

This Agreement shall be governed by and construed in accordance with the laws of the State of California, without regard to its conflict of law provisions.

5. Entire Agreement

This Agreement constitutes the entire agreement between the Parties and supersedes all prior agreements and understandings, whether written or oral, relating to the subject matter of this Agreement.

In conclusion, having an arbitration agreement in place is a wise decision for any business operating in California. Use our sample agreement as a starting point, but be sure to consult with an attorney to ensure that your agreement meets all legal requirements and addresses your specific business needs.