Arbitration involves adjudication by a neutral third-party. Often people are brought to arbitration by the terms of a contract that names arbitration as the process to resolve disputes. Unless otherwise agreed, in our province, the terms of the Alberta Arbitration Act govern the process.
An arbitrator decides the outcome of a dispute based on evidence and law. Arbitration is usually binding, and the outcome can be enforced like a court order.
An arbitration clause can be added to a contract to describe the process to use in case of a dispute. The ADR Institute of Canada’s Arbitration Rules offer clear procedures to conduct an arbitration and examples of clauses to add to contracts.
