Alternative Dispute Resolution
Sep. 29, 2026
Arbitration clauses in commercial contracts: Strategic advantage or unnecessary constraint?
Commercial arbitration can offer privacy, expertise and speed, but businesses should tailor each clause to the likely dispute because arbitration can also raise costs and limit discovery, court remedies and appeals.
Arbitration provisions have become commonplace in commercial agreements throughout a wide variety of industries. They are often inserted into contracts as part of the standard dispute-resolution language, sometimes with relatively little discussion between the parties.
That can be a mistake.
Whether arbitration is advantageous depends heavily on the nature of the transaction, the parties involved, the types of disputes that are most likely to arise and the business objectiv...
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