The settlement of a difference between two parties by an arbitrator is legally binding.

Question

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When parties agree to arbitration, they typically sign an agreement stating that they will accept the decision of the arbitrator as final and binding. This means that they agree in advance to abide by the decision and to waive their right to take the matter to court. Therefore, the settlement reached by an arbitrator is legally binding.

The Settlement of a Difference Between Two Parties by an Arbitrator