Legal Definitions - arbitrament

Arbitrament refers to the final and binding decision made by an impartial third party, such as an arbitrator, to resolve a dispute. It encompasses both the act of making this definitive judgment and the judgment itself, which is legally enforceable.

• Example 1: Business Contract Dispute

  Two technology companies, InnovateTech and GlobalSolutions, have a disagreement over the terms of a software development contract. Instead of going to court, their contract stipulates that any disputes must be resolved through binding arbitration. After presenting their arguments and evidence to a neutral arbitrator, the arbitrator issues a ruling that specifies how outstanding payments should be handled and which party is responsible for certain project delays.

  How this illustrates arbitrament: The arbitrator's definitive ruling, which settles the dispute between InnovateTech and GlobalSolutions and is legally binding, is an example of an arbitrament. It represents the final decision reached through the arbitration process.

• Example 2: Construction Project Disagreement

  A homeowner hired a contractor to build an extension, but they later disagreed on the quality of certain finishes and the final payment amount. To avoid litigation, they agreed to have an independent construction expert review the work and make a final determination on the remaining payment. The expert conducted an inspection, reviewed the contract, and issued a written decision detailing the adjustments to be made to the final invoice.

  How this illustrates arbitrament: The construction expert's final written decision, which resolves the dispute over the project's quality and payment, serves as the arbitrament. It is the conclusive judgment made by a neutral party to settle the disagreement.

• Example 3: Employment Termination Claim

  An employee filed a claim against their former employer for alleged wrongful termination. Both parties, wanting to avoid a lengthy court battle, agreed to submit the matter to binding arbitration. After hearing testimony from both sides and reviewing relevant documents, the arbitrator issued a decision stating that the termination was justified and no compensation was owed to the employee.

  How this illustrates arbitrament: The arbitrator's ruling, which definitively concludes the employment dispute and determines the rights and obligations of both the employee and employer, is an arbitrament. It is the final, enforceable judgment resulting from the arbitration process.