Contracts

A contract clause requiring all disputes to be submitted to arbitration rather than resolved in court is called a(n):

AEscalation clause
BArbitration clause✓ Correct
CLiquidated damages clause
DAcceleration clause

Explanation

An arbitration clause requires the parties to submit disputes to a neutral arbitrator rather than litigate in court. Such clauses are common in real estate purchase agreements and listing contracts.

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