Arbitration is an Alternative Disputes Resolution (ADR) procedure which is used primarily to resolve commercial disputes, especially those with cross-border elements. It is generally a quicker and cheaper option when compared with litigation, however, one of the key advantages is that as with a court order, an arbitration award is enforceable (although it can be challenged in court).
Parties to a commercial contract can include an option to arbitrate a dispute by entering into an Arbitration Agreement which can be free-standing or form part of the wider commercial contract. The Arbitration Agreement confirms that certain disputes may be referred to arbitration and can be entered into after a dispute develops.
An Arbitration Agreement will set out:
Like all alternative dispute resolution methods, arbitration is voluntary. Therefore, there is little point in entering into an Arbitration Agreement if you have no plans to abide by the Arbitrator’s final decision.
Arbitration has several advantages, including:
Entering into an Arbitration Agreement can have significant advantages for your business, especially if you are launching a cross-border initiative. Our dispute resolution solicitors can provide you with the advice you need to ensure any Arbitration Agreement you draft and/or sign protects your best interests. For a free 15 minute consultation, just click 'Get started' below.
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