24/05/2026
Not every “professional” contract clause is good for every business.
I often see dispute resolution clauses where small businesses, freelancers, consultants, or creators are pushed into private arbitration.
Arbitration exists for good reasons: confidentiality, specialist decision-makers, international business disputes, and avoiding public court. For larger companies, that can make sense.
But for a small business, the same clause can become a serious problem.
Why?
Because before you even get to the actual dispute, arbitration may involve registration fees, administrative fees, arbitrator costs, and legal costs. For example, SCC lists registration fees of EUR 3,000 excl. VAT under ordinary arbitration rules and EUR 2,500 excl. VAT under expedited arbitration rules. In comparison, Swedish small claims court procedure lists an application fee of SEK 900. 
So the real question is not:
“Is arbitration good or bad?”
The real question is:
Does this dispute resolution clause fit your size, risk, budget, and bargaining power?
Because a clause that gives a large company control and privacy may give a freelancer only one thing:
a dispute they cannot afford to pursue.
Before signing, check where disputes must be handled, what it costs, whether court is excluded, and whether the clause actually protects you — or only the stronger party.
Good contracts are not just about sounding serious.
They are about being usable when something goes wrong.