Legal Definitions - arbitrement

The term arbitrement is an archaic form of arbitrament. It refers to the formal decision or award made by an arbitrator in an arbitration proceeding.

In simpler terms, when parties in a dispute agree to have a neutral third party (an arbitrator) listen to their arguments and evidence, the final ruling or judgment issued by that arbitrator is called an arbitrament. This decision is typically binding on the parties, meaning they must abide by it, much like a court judgment, but it is reached outside of traditional litigation.

Here are some examples illustrating the concept of arbitrament:

• Example 1: Business Contract Dispute

  Two companies, TechSolutions Inc. and Global Logistics Corp., had a disagreement over the terms of a software development contract. Instead of going to court, their contract stipulated that any disputes would be resolved through binding arbitration. After several hearings, the appointed arbitrator issued a detailed ruling that specified how much TechSolutions Inc. owed Global Logistics Corp. for delays and incomplete work. This final ruling from the arbitrator is an arbitrament.

• Example 2: Construction Project Conflict

  A homeowner hired a contractor to build an addition, but they later disagreed on the quality of the work and the final payment. To avoid a lengthy lawsuit, they agreed to arbitration. An independent construction expert was chosen as the arbitrator. After reviewing blueprints, inspecting the work, and hearing both sides, the arbitrator decided that the contractor needed to fix specific issues and the homeowner should pay a reduced final amount. This decision by the arbitrator, resolving the dispute, constitutes an arbitrament.

• Example 3: Partnership Dissolution

  Two partners decided to dissolve their small marketing agency but could not agree on how to divide the assets and client list. They opted for arbitration to ensure a fair and impartial resolution. The arbitrator, after reviewing financial records and hearing proposals from both partners, issued a comprehensive plan for asset distribution and client transition. This binding resolution from the arbitrator is an arbitrament.