What is described as a clause in a contract requiring arbitration instead of court for dispute resolution?

The correct answer is a clause that requires arbitration instead of court for dispute resolution is known as "forced arbitration." This type of clause often necessitates that parties resolve their disputes through arbitration rather than through litigation in court. Forced arbitration clauses are commonly included in contracts to provide a streamlined and potentially less costly method of resolving disputes, as they often aim to limit the legal resources and time associated with a courtroom battle.

This approach can be seen in many consumer contracts, employment agreements, and other types of legal arrangements where one party may have more power, leading to the inclusion of arbitration clauses as a standard practice. The purpose is to encourage resolution through arbitration, which is typically private and may be faster than traditional court proceedings.

In contrast, voluntary arbitration refers to scenarios where both parties mutually agree to resolve their disputes through arbitration, without any clause mandating it in advance. Similarly, mediation clauses involve a non-binding process where a neutral third party helps facilitate the resolution of a conflict, while negotiation clauses pertain to the practices of entering discussions to reach an agreement without formal mechanisms like arbitration or mediation.