Arbitration Agreements & Clauses
An arbitration agreement is a contract to resolve disputes by arbitration instead of court. It often appears as an arbitration clause buried in a bigger contract — an employment offer, a credit card agreement, a terms-of-service. Signing one usually means giving up your right to sue in court and to a jury.
These clauses are generally enforceable under the Federal Arbitration Act, though courts won't enforce ones that are unconscionable. Many contracts include an opt-out window — you can reject the clause within a set period without losing the deal.
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Arbitration Agreements & Clauses — questions answered
Should I sign an arbitration agreement?
It depends. Signing usually waives your right to sue in court or join a class action. Read whether it's mutual, whether it caps your remedies, and whether there's an opt-out window. When unsure, ask a lawyer before signing.
Can I sue if I signed an arbitration agreement?
Usually not for covered disputes — a court will typically send the case to arbitration. But you may still sue if the clause is unconscionable, was fraudulently induced, or doesn't cover your specific claim.
How do I opt out of an arbitration agreement?
Many agreements (credit cards, apps, employers) let you opt out by sending written notice within a set window — often 30–60 days. Follow the exact method and deadline in the agreement.
Are arbitration agreements enforceable?
Generally yes, under the Federal Arbitration Act, unless the agreement is unconscionable or another contract defense applies. State laws that single out arbitration for disfavor are usually preempted.
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Attorney.plus is not a law firm and does not provide legal advice. This is general information about arbitration, not a substitute for advice from a licensed attorney in your jurisdiction.