Best Law Firms | Ranked by Best Lawyers | United States | 2025

Richard J. Lambert was recently selected by his peers for inclusion in the 2025 Edition of The Best Lawyers in America® in the field of Corporate Law.
Best Lawyers® is the oldest and most respected peer-review publication in the legal profession.

Dunn Lambert, LLC | Attorneys At Law

Comprehensive Legal Services For Businesses

In New Jersey And New York call
201-957-0874

Dunn Lambert, LLC | Attorneys At Law

Comprehensive Legal Services For Businesses

In New Jersey And New York call
201-957-0874

Dunn Lambert, LLC | Attorneys At Law

Call

Email

Business Law Professionals

The role of arbitration agreements in commercial contracts

On Behalf of | Jan 21, 2025 | Contract Disputes |

Arbitration agreements can save time and money compared to taking a case to court. New Jersey businesses often include them to streamline conflict resolution and avoid lengthy legal battles. Understanding how these clauses and contracts work can help businesses and individuals protect their interests.

What is an arbitration agreement?

An arbitration agreement is a clause within a contract that requires parties to settle disputes through arbitration instead of court. Arbitration is a private process where a neutral third party, called an arbitrator, listens to both sides and makes a decision. The decision is usually binding, meaning both parties must follow it.

This process is different from going to court. It is typically faster and less expensive. Also, parties have more control over the process, such as choosing the arbitrator and setting timelines. However, arbitration decisions are harder to appeal, so it is important to agree to the terms carefully.

What are the benefits of arbitration agreements?

Arbitration can offer several benefits for New Jersey residents and businesses. One key advantage is the time it saves. Court cases often take months or even years, while arbitration can conclude within a matter of weeks.

Cost is another reason why arbitration is appealing. Filing fees and other expenses in arbitration are usually lower than court costs. This makes arbitration a good option for resolving commercial disputes without spending too much.

Arbitration also provides privacy. Court cases are public, but arbitration happens behind closed doors. This helps businesses keep sensitive information private.

Finally, arbitration can be less stressful. The process is more flexible than court and allows for quicker resolutions.

Arbitration agreements play an important role in resolving disputes in commercial contracts with a faster, more affordable, and private way to address conflicts. New Jersey businesses can benefit from including arbitration agreements in contracts to protect their time and resources.