Post Dispute Arbitration Agreement: What It Is and Why You Need It

In today`s world, disputes and conflicts are common in every field, be it personal or professional. Businesses understand the importance of resolving disputes at the earliest to avoid any legal hassle. This is where Post Dispute Arbitration Agreement comes into play. It is a legal contract signed by two parties to resolve disputes through an arbitration process, which is a method of alternative dispute resolution (ADR).

What is Post Dispute Arbitration Agreement?

A Post Dispute Arbitration Agreement, also known as a PDA, is a legal contract that outlines the terms and conditions of resolving disputes between two parties. It is a voluntary process, and both parties agree to resolve their disputes outside the court of law. In this agreement, both parties agree to appoint an arbitrator who will decide the outcome of disputes. The arbitrator`s decision is binding on both parties, and they cannot go to court after the arbitration process ends.

Why Do You Need Post Dispute Arbitration Agreement?

1. Time-Saving: Post Dispute Arbitration Agreement is a time-saving process. It is much faster and less complicated than going to court, which can take several months to resolve a dispute.

2. Cost-Effective: Arbitration is a cost-effective process as it does not involve any court fees or attorney fees. The parties only need to pay the arbitrator`s fees, which is much lower than the fees of an attorney.

3. Confidentiality: Post Dispute Arbitration Agreement is a confidential process. The parties can avoid the public disclosure of their disputes, which can harm their reputation.

4. Flexibility: Parties can choose the arbitrator, and they can decide the date, time, and place of the arbitration hearing. They can also tailor the process to their specific needs.

5. Control: In the arbitration process, parties have more control over the outcome of the dispute. The decision is not in the hands of a judge or a jury, but an independent arbitrator who evaluates the evidence and makes a decision.


Post-Dispute Arbitration Agreement is an effective legal tool to resolve disputes outside the court of law. It saves time, money, and resources, is flexible and confidential, and gives the parties more control over the outcome of disputes. It is a win-win situation for both parties, and it is essential to have one in place to avoid any legal hassle in the future.