Arbitration Policy

An arbitration policy is a document in which two parties or more agree to handle disputes that may arise between them through binding arbitration. Binding arbitration is a dispute resolution mechanism outside of the court system that is managed by a single person or three persons. The people who conduct the arbitration are called arbitrators. The arbitrators, whether one or three, are usually chosen by the parties or by the Canadian Arbitration Association, the leading alternative dispute resolution organization providing arbitration services in Canada and internationally.

Parties entering into an arbitration policy may have any kind of relationship with each other. Often, arbitration agreements are used in conjunction with other comprehensive written contracts. Examples of situations in which arbitration agreements may be used include employment (if the employment contract does not already contain an arbitration clause) or joint ventures, through a joint venture agreement or partnership agreement.

In an arbitration policy, the parties explicitly agree that no dispute between them will go through the traditional court system and that it will be handled by binding arbitration. In other words, if, after signing an arbitration policy, one of the parties attempts to bring a lawsuit, the court will not allow it and will dismiss the case to arbitration. When parties sign an arbitration policy, they fully waive their right to litigate the matter in court.

Arbitration is an alternative to the courts and is becoming increasingly popular. Arbitration sessions are private and confidential and decisions are final. Arbitrators are experienced in the area arbitrated and design the process to meet the needs of the parties. The process is less formal than court and can be scheduled at times convenient to the lawyers and their clients.

How do I use this document?

This document can be used and completed by either party wishing to set the terms of binding arbitration.

In this document, only basic information will be requested from the parties, such as their name and identification data, followed by basic information about the nature of the legal relationship, such as whether there is another contract and the exact location where the relationship between the parties is exercised.

The document then automatically fills in the information needed to create a binding arbitration policy. Once the document is completed, each party must sign it and keep a copy.

Applicable Law

In Canada, arbitration is regulated primarily by provincial rather than federal legislation. The governments of all provinces and territories in Canada, except Quebec, have enacted legislation recognizing the United Nations Commission On International Trade Law (UNCITRAL) Model Law on International Commercial Arbitration (1985).

In Quebec, the Civil Code of Quebec (Article 2638 et seq.) and the Code of Civil Procedure (Article 620) are consistent with the UNCITRAL Model Law.

How to modify the template?

You fill out a form. The document is created before your eyes as you respond to the questions.

At the end, you receive it in Word and PDF formats. You can modify it and reuse it.