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Chess Game
Advantages of Arbitration

Cost effective
As arbitration procedures saves time it therefore cuts out the need for numerous litigation stages and formalities, which cuts down on unnecessary expenses.
In arbitration, parties can avoid the risk of bad publicity, which is often associated with litigation, so outsiders do not have access to sensitive business and financial information, even the arbitrators to the case are not permitted to disclose the details of the case without the consent of the parties.
Privacy can be an important advantage of arbitration over litigation as it implies that the parties are able to continue to have a relationship – even a working business relationship – after the dispute has been resolved.
 Neutrality & Specialised competence of arbitrators
Arbitration offers the parties the chance to select persons of their choice as arbitrators; this gives arbitration one of its hallmarks since it ensures quality of the procedures and offers the possibility of a completely neutral panel of adjudicators.
Arbitrators are qualified area experts for specific disputes unlike an ordinary judge, who depends on the submissions of experts and makes a decision based on adversarial views. In cases when the subject matter of the dispute is highly technical, judges in litigation procedures, may not have any special expertise about the matters in dispute; hence there is a further need to depend on the submissions of experts and makes a decision based on adversarial views. Arbitration can avoid this need, by ensuring that the arbitrators chosen are qualified experienced professionals in their line of work.
Flexibility and fairness, skills and experience of arbitration, quality of arbitral awards, availability, knowledge of the applicable law and reputation are the key factors that are mostly considered when selecting arbitrators.

Less time consuming-no lengthy court procedures to endure


Autonomy of parties  (Less formality)
One of the most valued features of international arbitration is that parties have a better degree of freedom over the proceedings. They have the freedom to decide how their disputes are resolved and to conduct the proceedings as they desire. Unlike litigation, where the parties’ movements are restricted in accordance with the restrictions of the court and judge, arbitration is less formal and as flexible as the parties wish it to be.
For instance, parties are entitled to agree on main procedural matters, whereby they can decide as to whether to conduct arbitration by documentation or by holding hearings. Parties may also decide on additional issues such as the language of the procedures, the applicable law, venue, number of arbitrators and preferred professional background.
Binding effect of award
Arbitration awards are final and binding. Once the final award is issued, the procedure is complete and parties are obliged to comply.
Arbitral awards have the same effect as final and conclusive judgements awarded by courts under the law. Parties do not have to suffer the consequences of further appeal proceedings based on the merit of the award. The winning party may apply to the courts to confirm the arbitral award. This procedure has the effect of turning the arbitration award into a court judgment and allowing the winning party to take advantage of the court's procedures for the enforcement of judgments.
Although arbitral awards may be subject to being challenged (either in the country where it was rendered or in a foreign country where enforcement is required), final awards can be enforced internationally more easily than court judgements. As a result of the several regional and bilateral treaties, arbitration awards enjoy much greater international recognition than judgements of national courts.

Greater chance of preserving an on-going working relationship once the conflict has been settled

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