Arbitration Agreement Template, Free Download 2026

By Jessica Henwick, Editor-in-ChiefLegally reviewed by David Chen, Esq.
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When Do You Need a Arbitration Agreement?

Your business wants to include a binding arbitration clause in customer contracts, employment agreements, or vendor contracts to resolve disputes outside of court.

Two parties are already in a dispute and agree to submit it to binding arbitration rather than filing a lawsuit, needing a submission agreement.

You are drafting a commercial contract and need a full dispute resolution clause that includes mandatory mediation followed by binding arbitration. Use our free arbitration clause template and pair it with a service agreement template.

📋 State-Specific Note: The Federal Arbitration Act (9 U.S.C. § 1-16) preempts most state laws that restrict arbitration agreements. However, the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act (2022) allows employees to void pre-dispute arbitration agreements for sexual assault and harassment claims.

⚠ Warning: Courts may refuse to enforce arbitration agreements that are deemed unconscionable, particularly in consumer and employment contexts with one-sided terms, excessive costs to the weaker party, or inadequate discovery provisions.

What Should a Arbitration Agreement Include?

Scope of Arbitrable Disputes

Which disputes are subject to arbitration: all disputes, only disputes above a threshold, or specific categories. Exclude carve-outs for injunctive relief or small claims if needed.

Arbitration Rules and Forum

The governing rules (AAA Commercial, JAMS Comprehensive, UNCITRAL for international) and the seat/location of arbitration.

Arbitrator Selection

Number of arbitrators (one or three), qualifications, and the selection process.

Discovery and Procedure

The scope of pre-hearing discovery, document exchange, depositions, and hearing procedures.

Award and Enforcement

Whether the award from this binding arbitration agreement is final, the available remedies, prevailing party attorney fees, and the right to confirm the award in court under the FAA.

Legal Details: Key Clauses in a Arbitration Agreement

Parties
1.1

This Arbitration Agreement (this "Agreement") is entered into by and between [____________] ("Party A") and [____________] ("Party B") (collectively, the "Parties"). The Parties agree to resolve certain disputes through binding arbitration as set forth herein.

Scope
2.1

Any and all disputes, claims, or controversies arising out of or relating to [the agreement between the Parties dated ____________ / the Parties' business relationship / ____________] (each a "Dispute") shall be resolved exclusively through binding arbitration, except as otherwise provided herein. This includes claims for breach of contract, tort, statutory violations, and equitable relief.

Arbitration Rules
3.1

Arbitration shall be conducted in accordance with the [Commercial Arbitration Rules of the American Arbitration Association ("AAA") / JAMS Comprehensive Arbitration Rules / Arbitration Rules of ____________]. The Federal Arbitration Act (9 U.S.C. §§ 1-16) shall govern the interpretation and enforcement of this Agreement.

Arbitrator Selection
4.1

The arbitration shall be conducted by [one (1) / three (3)] neutral arbitrator(s) selected in accordance with the applicable arbitration rules. The arbitrator(s) shall be [a retired judge / an attorney with at least ten (10) years' experience in ____________ law / selected from the ____________ panel]. Each party shall bear equal cost of the arbitrator's fees.

Location
5.1

The arbitration shall take place in [____________, _____________] or at such other location as mutually agreed. The Parties may agree to conduct the arbitration by videoconference.

Discovery
6.1

Discovery shall be limited to [the exchange of relevant documents / one deposition per party / as determined by the arbitrator]. The arbitrator may permit additional discovery upon a showing of good cause. The Parties shall exchange relevant documents within [thirty (30)] days of the initial conference.

Award
7.1

The arbitrator's award shall be final, binding, and enforceable in any court of competent jurisdiction. The arbitrator shall issue a reasoned written decision. The arbitrator may award any remedy available at law or in equity, including compensatory damages, specific performance, and injunctive relief, but [shall / shall not] have authority to award punitive damages or consequential damages.

Confidentiality
8.1

The arbitration proceedings, including all submissions, testimony, evidence, and the award, shall be kept strictly confidential by the Parties and the arbitrator, except as necessary to enforce the award or as required by law.

Costs
9.1

Each party shall bear its own attorneys' fees and costs, unless the arbitrator determines that one party's claim or defense was frivolous, in which case the arbitrator may award fees and costs to the prevailing party. The administrative fees of the arbitration organization shall be shared equally unless the arbitrator orders otherwise.

Governing Law
10.1

This Agreement shall be governed by the Federal Arbitration Act and the laws of the State of [_____________]. If any provision is held unenforceable, the remaining provisions shall be enforced to the maximum extent permitted. This Agreement survives termination of the underlying agreement between the Parties.

Signature Requirements

E-Signature Valid

Arbitration agreements are valid with electronic signatures under ESIGN/UETA and the Federal Arbitration Act.

How to Fill Out a Arbitration Agreement

1

Define the Scope

Determine which disputes will be arbitrated and any carve-outs for specific claims or small amounts.

2

Select the Forum and Rules

Choose the arbitration organization, applicable rules, and location.

3

Set Procedural Terms

Define the arbitrator selection process, discovery scope, and hearing procedures.

4

Execute

Include the dispute resolution clause in the relevant contract, or execute as a standalone binding arbitration agreement form. Download and print the PDF for your records.

Free Template vs Custom Arbitration Agreement

FeatureFree TemplateCustom (AI or Attorney)
Free <strong>arbitration</strong> clause template (printable PDF download)
Standalone binding <strong>arbitration</strong> agreement form-
International <strong>arbitration</strong> and dispute resolution clause template-
Attorney review of enforceability-

Key Facts About Arbitration Agreement Documents

Federal Arbitration Act preempts state laws restricting arbitration agreements.

Arbitration agreement requires disputes to be resolved by private arbitrator not court.

EFAA allows employees to void pre-dispute arbitration for sexual harassment claims.

Class action waivers in arbitration agreements prevent collective dispute resolution.

Unconscionable arbitration clauses may be voided by courts under state contract law.

Key Legal Terms in a Arbitration Agreement

arbitration agreementFederal Arbitration ActAAAJAMSbinding arbitrationarbitral awardunconscionabilityclass action waiverdiscovery limitationsEFAA

When a Free Template Is Not Enough

Free templates cover standard situations, but a professionally drafted arbitration agreement accounts for state-specific requirements, unusual circumstances, and enforceability considerations that generic forms miss. If your situation involves significant assets, complex terms, or potential disputes, request an attorney-drafted arbitration agreement with a custom quote based on your situation.

Arbitration Agreement Template FAQ

What is an arbitration agreement?
An arbitration agreement is a contract (or dispute resolution clause within a contract) in which parties agree to resolve disputes through binding arbitration rather than filing a lawsuit in court. The arbitrator, a neutral private decision-maker, hears evidence and issues a final and binding award that is enforceable like a court judgment under the Federal Arbitration Act. This binding arbitration agreement form is typically faster, more private, and less expensive than litigation, but the parties give up their right to a jury trial and have very limited appeal rights.
Can you opt out of an <strong>arbitration</strong> agreement?
Some arbitration agreements include an opt-out provision giving the other party (usually a consumer or employee) a limited window (typically 30 days) to reject the arbitration clause. If you opt out within the specified period, you preserve your right to litigate in court. If there is no opt-out provision, the arbitration agreement is binding if you agreed to it (by signing the contract, clicking "I agree," or continuing employment). Courts will also refuse to enforce arbitration agreements that are unconscionable or obtained through fraud.
What is the purpose of an arbitration agreement?
An arbitration agreement requires parties to resolve disputes through private arbitration rather than court litigation. Employers and businesses use them to control cost, keep proceedings confidential, choose neutral arbitrators, and limit class-action exposure. Arbitration awards are enforceable under the Federal Arbitration Act and rarely subject to appeal.
Should I sign an arbitration agreement?
Signing an arbitration agreement waives your right to sue in court and to a jury trial for covered disputes. Before signing, review the scope of disputes covered, who pays arbitration fees, whether class actions are waived, the arbitrator selection process, and any opt-out window. Some agreements are negotiable, especially in employment contexts.
Does an arbitration agreement mean you cannot sue?
For disputes within scope, yes. A valid arbitration agreement generally bars filing a lawsuit and instead requires submitting the claim to arbitration. Narrow exceptions exist: claims for sexual harassment or sexual assault under federal law, certain statutory rights, and clearly unconscionable agreements may still proceed in court.
What is an example of an arbitration clause?
A typical clause states: "Any dispute arising out of or relating to this agreement shall be resolved by binding arbitration administered by the American Arbitration Association under its Commercial Arbitration Rules, with the arbitration to take place in [city, state]. Judgment on the award may be entered in any court of competent jurisdiction."

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