Definition

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It is difficult to find a comprehensive definition for arbitration by taking into account the different national laws. However, one can recognise that arbitration is a means of resolving disputes by a third person. This may be an individual (an arbitrator), or, an arbitral tribunal which can consist of any number of arbitrators, who will decide a resolution to the dispute by providing a legally binding award on the parties. The arbitral tribunal is required to be impartial and parties should bind themselves to accept and implement the resulting decision.

Why resort to arbitration?

 

Arbitration has become known as the favourite mechanism for many national and international entities seeking to resolve commercial disputes. The main advantage of arbitration is the ability to deal finally with differences between parties by flexible, more efficient, more informal, less expensive than going to court; it has the advantage of providing the parties with a more private and confidential forum that suits their convenience instead of the rigid and formal system of the courts. Unlike judges, Arbitrators are chosen by the parties trusting their strong legal and technical expertise, their discretion and their experience with a wide range of businesses, cultures, and regions of the world.