> For the complete documentation index, see [llms.txt](https://peoplescourt.ai/llms.txt). This page is also available as Markdown.

Model clause

# Arbitration clause for SaaS terms

Put the People’s Court model clause in the terms the customer accepts, or in the order form those terms incorporate. It covers disputes arising out of the agreement. Uptime, credits, and liability caps stay in the rest of the terms.

AI-only fee5.67%$1.67 minimumSeatWilmingtonDelawareLawFAA9 U.S.C. §§ 1 et seq.AppealOne human appealUnless every party waives it

## Where to put it

- Place it where the customer accepts the terms, and show a link to the Rules at acceptance.
- Leave service levels, credits, and liability limits in the rest of the terms. The clause does not rewrite them.
- Use the marketplace clause, not this one, for a dispute between two of your customers.
- Pick one option in the bracketed tier sentence before the terms go live.

## 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 create a remedy for downtime or a data incident. Those stay in the rest of the terms.
- It does not make the provider the arbitrator of disputes between customers.
- It is sample language, not legal advice, and not a promise of enforceability.

## Common questions

### Where should a SaaS company put the clause?

In the terms the customer accepts, or in the order form those terms incorporate. Show a link to the Rules at acceptance. Uptime, service credits, and liability caps stay in the rest of the terms.

### Does the clause cover an API or usage dispute?

The model clause covers disputes arising out of or relating to the agreement. Orders, usage records, and the written terms are the usual Record. The clause does not create a new remedy for downtime.

### What about a dispute between two customers?

Use the marketplace clause for disputes between users. This page is for the contract between the provider and the customer.

### How much does a SaaS dispute cost to arbitrate?

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 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.

Model clauseSwitch your clauseHow Awards are enforcedMarketplace clauseFor marketplaces