Arbitration Agreement Assignment

Arbitration Agreement Assignment: Understanding the Basics

In today’s world, where people are increasingly turning to digital platforms for every aspect of their lives, it has become more important than ever to have a clear understanding of legal terms and agreements. One such agreement that is gaining popularity is the arbitration agreement assignment. Here’s everything you need to know about it.

What is an Arbitration Agreement Assignment?

An arbitration agreement is a legal contract that is entered into by two parties, agreeing to resolve any disputes between them by arbitration rather than litigation. In an arbitration agreement assignment, one party transfers their rights to arbitrate a dispute to another party. This means that the assignee takes on the rights and obligations of the assignor in the arbitration agreement.

Why Would Someone Assign an Arbitration Agreement?

There are many reasons why someone might want to assign an arbitration agreement. Assigning an agreement is often done when a business is bought or sold, or when a merger or acquisition takes place. In these situations, the new owner or merged company may wish to take over the rights and obligations of the previous owner or merged company.

Another reason why someone might want to assign an arbitration agreement is when they no longer need the right to arbitrate a dispute. For example, a company may have entered into a contract with a supplier that includes an arbitration clause. However, if the company no longer requires the services of the supplier, they may choose to assign the arbitration agreement to a third party.

Benefits of Arbitration Agreement Assignment

There are several benefits of assigning an arbitration agreement. For one, it can save time and money. Arbitration is generally faster and less expensive than litigation. By assigning the agreement, the parties can avoid the time and expense of going to court.

Another benefit is that arbitration is a more private and confidential process than court proceedings. This can be particularly important in cases where sensitive information is involved.

Finally, arbitration is often seen as a more effective way to resolve disputes because it is less adversarial than litigation. The parties are encouraged to work together to find a mutually acceptable solution.


In conclusion, an arbitration agreement assignment is a legal contract that assigns the rights and obligations of an arbitration agreement from one party to another. It can be a useful tool for businesses that are undergoing changes, such as mergers or acquisitions, as well as for parties who no longer require the right to arbitrate a dispute. By transferring the rights to arbitrate, the parties can save time and money, maintain confidentiality, and find a mutually acceptable solution in a less adversarial process.