arbitration clause

Definition

A clause stating that in case of a disagreement regarding the amount of a claim, each party (the insured and the insurer) will appoint an appraiser, who will then select an umpire. An amount will then be determined by at least two of the three, and this settlement will be binding.

Use arbitration clause in a sentence

You should try to make sure that there is a good arbitration clause in your contract in case of disagreement.

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To skirt around the law, credit card companies have become masters at inserting arbitration clauses into every contract they send out.

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ABC Mortgage Company Inc. always writes in an arbitration clause into the contracts that they negotiate with their services providers and vendors.

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arbitration arbitration panel