When you sign a contract offered to you as a “standard” prepared by an attorney, do you know what you are agreeing to? Unfortunately, many would say no. Many stop at the products/service and price, leaving the rest as if they are mandatory. “there is nothing I can do about it anyways” they say to themselves.
Unfortunately, this has proven to be extremely dangerous. One example that can show the gravity is Arbitration Clause.
An arbitration clause requires that disputes arising out of contracts and transactions be resolved through arbitration. many people don’t know what arbitration is or how it works, let alone whether it is beneficial or detrimental.
Arbitration Pros and Cons
Pros of Arbitration includes minimized hostility, usually cheaper than litigation,
faster than litigation and simplified rules of evidence and procedure.
But arbitration has drawbacks as well. With arbitration, you have no right to appeal if the arbitrator’s award is unfair or illogical. Moreover, the cost of arbitration is on the rise. Potential arbitration costs include filing fees, hearing fees, administrative fees, hearing room rentals, and arbitrator fees that typically range from $375 to $1,125 an hour.
Know the Terms of Your Agreements
Smart things to do is to read or have an attorney review the agreement you are offered, pay attention to all terms including the fine print.