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Model clause

Arbitration clause for a freelance contract

Paste the People’s Court model clause into the freelance agreement both sides sign. It sends disputes arising out of that agreement to binding arbitration, with the seat in Wilmington, Delaware, under the Federal Arbitration Act. It does not set the price, the scope, or the invoice terms.

AI-only fee
5.67%$1.67 minimum
Seat
WilmingtonDelaware
Law
FAA9 U.S.C. §§ 1 et seq.
Appeal
One human appealUnless every party waives it

Where to put it

  • Put it in the services agreement, in the part both sides sign.
  • Keep the price, the deliverables, and the invoice terms in the rest of the agreement.
  • If a contract already names another forum, replace that clause. Do not leave two forums in the same agreement.
  • If the dispute already exists, both sides can sign a submission agreement instead of amending the old contract.

The clause to copy

Pick one option in the bracketed tier sentence. The legal text is the published People’s Court clause, not a new set of rules.

People’s Court model clause

Any dispute, controversy, or claim arising out of or relating to this agreement, or the breach thereof, shall be resolved by binding arbitration administered by People’s Court (https://peoplescourt.ai), a service of Epistemic Labs Inc., under its Rules of Procedure & Evidence in effect when the case is filed. The juridical seat is Wilmington, Delaware, regardless of any party’s residence or the physical or virtual location of the proceedings. The arbitration agreement and arbitration are governed by the Federal Arbitration Act, 9 U.S.C. §§ 1 et seq.

The parties delegate to the People’s Court Tribunal authority to decide the formation, validity, enforceability, scope, and arbitrability of this arbitration agreement. This arbitration agreement is separable from the remainder of this agreement.

The parties agree to [the AI-only tier / the AI-assisted human tier / choose the tier when a case is filed, with AI-only applying unless all parties then choose AI-assisted human]. In the AI-only tier, an AI Tribunal decides and serves the first-instance Award without human merits review before service, except that a human Arbitrator may decide a question the AI Tribunal cannot. Any human appeal is limited, proceeds on the existing Record, and follows the deferential standards in the Rules.

The parties acknowledge that People’s Court uses proprietary AI adjudication technology that is not subject to disclosure except as required by applicable law. If disclosure is required, the parties consent to appropriate protective or confidential treatment.

The operative Award is final and binding, and judgment may be entered on it in any court having jurisdiction. Where funds are held under an authorized escrow or payment mechanism for the transaction, the parties authorize disposition of those funds in accordance with the Award.

A party may initiate an arbitration at https://peoplescourt.ai/intake. The parties consent to electronic notice in accordance with the Rules, including by email and through the People’s Court Case Page where applicable. The Rules are available at https://peoplescourt.ai/rules. Filing support is available at contact@peoplescourt.ai.

General sample language only. It is not legal advice or a promise of enforceability. Review the current Rules and Terms before relying on it.

What this clause does not do

  • It does not set the fee for the work, a late charge, or who owns the work.
  • It does not let one side start a binding case alone. The other side must have agreed, in the contract or in a submission agreement.
  • It is sample language, not legal advice, and not a promise that a court will enforce it.

Common questions

Where does the clause go in a freelance contract?

In the services agreement, in the part both sides sign. A link in a proposal footer that nobody accepts is not the agreement. The text on this page is the People’s Court model clause.

Does the clause set my rate or my invoice terms?

No. Price, deliverables, and invoice terms stay in the rest of the agreement. The clause chooses the forum, the Wilmington, Delaware seat, the Federal Arbitration Act, and the tier.

What if the client will not add a clause?

A binding case needs the client’s agreement. For a dispute that already exists, both sides can sign a submission agreement and file. Until then, a nonbinding Quick Ruling is an option.

How much does a case cost under this clause?

AI-only cases cost 5.67% of the amount in dispute, with a $1.67 minimum. The exact fee is shown before payment and does not depend on who wins.

Is the sample clause legal advice?

No. It is sample language that sends the dispute to People’s Court. Read the current Rules and Terms with it.

These answers describe People’s Court procedure and general law. They are not legal advice for a particular dispute.