People in Florida agree to do certain things for others daily. However, if one party wants to truly ensure that the other party will follow through on what they say they will do, then the parties should enter into a contract. That is why businesses in Florida usually have contracts when they enter into agreements with other businesses. These types of contracts are also usually written so if there is ever a dispute later on the parties can refer to the written terms to determine what each of their responsibilities are.
These types of contracts can contain many different terms depending on the complexity and duration of the contract. However, most companies do not always look at every clause of the contract daily. Some of these clauses are only discussed when there is already a contract dispute between the parties. Some of these clauses only determine what process and law the companies will use to resolve their disputes when they arise. One of these types of clauses are arbitration clauses.
Arbitration clauses state that the parties shall use an arbitrator to resolve any disputes instead of filing lawsuits in court. Arbitrators are neutral third-party individuals who act as the judge in the matter. They are trained in resolving contract disputes and will collect evidence from both sides, analyze it and issue a binding decision for resolution of the matter. The parties must pay the arbitrator’s fees for deciding the dispute. However, even though they can cost more, arbitration is a private process which can have its advantages.
Companies in Florida enter into various contracts every day. Once signed by both parties these contracts are binding and both parties are expected to follow its terms. If one party does not follow the terms of the contract, the parties could have a contract dispute. Depending on the terms of the contract these disputes may be resolved in court or in arbitration. So, it is important to understand the terms when the contract is signed if a party prefers to use one option over the other.