Arbitrage
Arbitration
Arbitration is an alternative form of dispute resolution whereby the parties submit their dispute for resolution by one or more arbitrators rather than by the ordinary courts.
Arbitration is a procedure in which the parties, by mutual agreement, appoint a neutral third party—the arbitrator—to render a binding decision on their dispute. This takes place outside the public court system and enables the parties to select an expert with specialist knowledge of the relevant area of law.
It is relevant in that it allows the parties to resolve their dispute swiftly, confidentially and with greater flexibility, often at lower cost than court proceedings. The arbitral award is binding and may, subject to certain conditions, be enforced.
In practice, arbitration is widely used in international trade agreements, construction disputes and complex commercial conflicts where the parties prefer a private and specialised form of dispute resolution.
“The parties have stipulated arbitration in their contract to ensure the efficient and confidential resolution of any disputes.”
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