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Simple English definitions for legal terms
ad hoc arbitration
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A quick definition of ad hoc arbitration:
Ad hoc arbitration is a way to solve a disagreement by having a neutral third party make a decision that both sides agree to follow. It only deals with one specific issue. There are different types of arbitration, such as grievance arbitration for labor disputes or interest arbitration for negotiating new contracts. Sometimes arbitration is required by law, but other times it is voluntary and agreed upon by both parties.
A more thorough explanation:
Ad hoc arbitration is a type of arbitration that involves resolving only one issue. Arbitration is a method of resolving disputes where one or more neutral third parties make a binding decision that the disputing parties agree to abide by. Ad hoc arbitration is different from other types of arbitration, such as grievance arbitration or interest arbitration, which involve resolving multiple issues or negotiating a new contract.
- Two companies are in a dispute over a breach of contract. They agree to use ad hoc arbitration to resolve the issue of damages owed.
- A landlord and tenant are in a dispute over the return of a security deposit. They agree to use ad hoc arbitration to resolve the issue.
In both examples, the parties are using ad hoc arbitration to resolve a specific issue rather than a broader dispute or negotiation. This allows them to focus on the specific issue at hand and come to a binding decision without the need for a lengthy legal process.