Can we talk about the 'final and binding' clause in a service contract?

Honestly, I had to pick between two freelance web design contracts last month. One had a standard arbitration clause, but the other said any dispute would be 'finally and bindingly settled' by a single person the client picked. That last part felt off. I went with the first one, even though the pay was a bit less. Ngl, it was a good call. A small issue came up about extra revisions, and we used the normal arbitration process. It was fair and had clear rules. If I'd taken the other job, the client could have just chosen their friend to decide. Has anyone else seen a clause that lets one side pick the judge with no rules? How did you handle it?

3 comments

3 Comments

abby_fisher15d ago

Last year my own contract had a final and binding clause and it saved months of legal fees. Sometimes you just need a fast decision from someone who knows the industry, not a drawn out court fight. The client picking the person can make sense because they understand their own business needs best. Gray_hall4 is assuming bad faith, but most people are just trying to get work done efficiently. A clear yes or no from one expert is often better than a messy arbitration where both sides still lose money.

drews5515d ago

Yeah, that "final and binding" stuff is a huge red flag. My cousin got burned on a landscaping job with a similar clause. The homeowner picked his brother-in-law to "settle" a payment dispute, and guess who lost? Total scam setup. Always read the fine print.

gray_hall415d ago

Ugh, that's so messed up. Your cousin's story is exactly why those clauses are dangerous. It sounds totally fair until someone brings in a biased third party to decide everything. Once you sign that, you're just stuck with whatever they say, even if it's completely unfair. It really is a scammy way to trap people. Sorry your family had to deal with that garbage.