Oral Arbitration Agreement for the United States

Oral Arbitration Agreement Template for United States

An Oral Arbitration Agreement is a legally binding document that memorializes a verbal agreement between parties to resolve disputes through arbitration rather than litigation. Under U.S. law, particularly the Federal Arbitration Act, such agreements are enforceable provided they meet certain requirements. This document outlines the terms of arbitration, including scope, procedure, and cost allocation, while providing evidence of the original oral agreement.

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What is a Oral Arbitration Agreement?

The Oral Arbitration Agreement serves as a written record of a verbal commitment to arbitrate disputes. This document type is particularly important when parties have reached an oral agreement but need to ensure its enforceability under U.S. law. The agreement must comply with the Federal Arbitration Act and applicable state laws, detailing the scope of arbitrable disputes, selection of arbitrators, and procedural requirements. While oral agreements to arbitrate can be valid, documenting them helps prevent future disputes about their existence and terms.

What sections should be included in a Oral Arbitration Agreement?

1. Parties: Identification of all parties entering into the oral arbitration agreement

2. Background: Context and circumstances leading to the oral arbitration agreement

3. Definitions: Key terms used throughout the agreement

4. Agreement to Arbitrate: Clear statement of mutual agreement to resolve disputes through arbitration

5. Scope of Arbitration: Specific types of disputes covered by the agreement

6. Arbitration Rules: Procedures and rules governing the arbitration process

7. Selection of Arbitrator: Process for choosing the arbitrator(s)

8. Costs and Fees: Allocation of arbitration costs between parties

What sections are optional to include in a Oral Arbitration Agreement?

1. Class Action Waiver: Optional provision for waiving right to participate in class actions, typically used in consumer or employment disputes

2. Confidentiality: Optional provisions regarding confidentiality of the arbitration proceedings, recommended when sensitive business information may be involved

3. Discovery Provisions: Optional rules regarding information exchange, useful in complex disputes where extensive discovery may be needed

4. Appeals Process: Optional procedures for appealing arbitration decisions, used when parties want to preserve appeal rights

What schedules should be included in a Oral Arbitration Agreement?

1. Witness Statement: Written testimony of witnesses to the oral agreement

2. Evidence of Agreement: Documentation supporting the existence of the oral agreement (emails, notes, etc.)

3. Arbitration Rules Reference: Copy of the chosen arbitration organization's rules

4. Fee Schedule: Detailed breakdown of arbitration costs and fees

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

United States

Publisher

Genie AI

Cost

Free to use
Industries

Federal Arbitration Act: Primary federal law (9 U.S.C. ยงยง 1-16) governing arbitration agreements in the US. Establishes validity and enforceability of arbitration agreements and preempts conflicting state laws.

State Arbitration Laws: Individual state statutes and the Uniform Arbitration Act (where adopted) that govern arbitration agreements at the state level, including specific state requirements for oral agreements.

Contract Formation Requirements: Basic elements necessary for valid contract formation including offer, acceptance, and consideration, as applied to oral arbitration agreements.

AT&T Mobility LLC v. Concepcion: Key 2011 Supreme Court case affecting the enforceability of arbitration agreements, particularly regarding class action waivers.

Epic Systems Corp. v. Lewis: 2018 Supreme Court case reinforcing the enforceability of individual arbitration agreements in employment contracts.

Statute of Frauds: Legal doctrine requiring certain types of contracts to be in writing; must be considered when evaluating enforceability of oral arbitration agreements.

Interstate Commerce Considerations: Requirements and implications when the arbitration agreement involves parties or transactions across state lines.

Arbitration Scope: Definition and limitations of what disputes can be covered under the oral arbitration agreement.

Arbitrator Selection: Process and criteria for selecting arbitrators must be clearly established, even in oral agreements.

Cost Allocation: Determination of how arbitration costs will be divided between parties, which must be addressed in the agreement.

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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