Oral Arbitration Agreement Template for England and Wales

When parties reach a verbal agreement to arbitrate their disputes, creating a written Oral Arbitration Agreement provides essential legal protection and clarity. This document serves as written confirmation of your oral commitment to resolve conflicts through arbitration rather than traditional court proceedings, ensuring enforceability under United States law.

When do you need this document?

You need an Oral Arbitration Agreement when you've verbally agreed with another party to handle future disputes through arbitration but want to document those terms in writing. This situation commonly arises during business negotiations, employment discussions, or contract modifications where parties prefer arbitration but haven't formalized the arrangement. The document is also essential when you need to prove the existence and scope of an oral arbitration commitment in legal proceedings. Additionally, you may need this agreement to satisfy lender requirements, comply with industry standards, or meet contractual obligations that reference arbitration procedures.

Key legal considerations

Your Oral Arbitration Agreement must clearly identify all parties and specify the exact scope of disputes covered by the arbitration clause. The document should detail the arbitrator selection process, applicable arbitration rules, and procedural requirements to avoid future conflicts. Consider including provisions for discovery limitations, evidence presentation, and award enforcement mechanisms. You must also address whether the arbitration will be binding or non-binding and specify the governing law for both the agreement and the arbitration process. Be aware that certain types of disputes, such as those involving criminal matters or some employment rights, may not be suitable for arbitration under federal or state law.

Legal requirements in the United States

Under the Federal Arbitration Act (9 U.S.C. §§ 1-16), your Oral Arbitration Agreement must demonstrate mutual assent, consideration, and compliance with basic contract formation principles. The agreement must be in writing to satisfy the statute's requirements, even when documenting an oral commitment. State laws may impose additional requirements, particularly regarding consumer protection, employment relationships, or specific industry regulations. Your document should comply with applicable state arbitration statutes and the Uniform Arbitration Act where adopted. Recent Supreme Court decisions, including AT&T Mobility LLC v. Concepcion and Epic Systems Corp. v. Lewis, have strengthened the enforceability of arbitration agreements, but you must still ensure your agreement doesn't violate public policy or contain unconscionable terms that could render it unenforceable.