Can I include an arbitration clause in a simple business agreement?

Yes, you can include an arbitration clause in virtually any commercial agreement, specifying that future disputes arising from the contract will be resolved through arbitration rather than regular court litigation. This is a common and generally effective way to plan for potential future disagreements in advance.

A well-drafted arbitration clause should specify key details — the number of arbitrators, how they will be appointed, the seat (location) of arbitration, the language of proceedings, and ideally, a reference to a recognised set of arbitration rules or institution, to avoid ambiguity if a dispute actually arises later.

While it's certainly possible to draft a basic clause yourself, a poorly worded or incomplete arbitration clause can itself become a source of dispute — over whether it's even valid or how it should be interpreted. Given how much smoother arbitration tends to go with a clear, properly drafted clause, it's worth having a lawyer review or draft this specific clause even if you handle the rest of the agreement yourself.