Arbitration

Arbitration is a contract-based, binding dispute resolution process where parties agree to submit their dispute to a neutral third party, called an arbitrator or an arbitration tribunal, instead of going to court. The arbitrator hears the arguments and evidence from both sides and then makes a final decision, known as an award, which is usually binding and enforceable.

Key points about arbitration include:

• Agreement basis: Arbitration depends on an arbitration agreement between the parties, which can be part of a contract or entered into after a dispute arises.
• Binding nature: Unlike mediation or conciliation, where outcomes are recommendations, arbitration decisions are binding and enforceable, with limited grounds for court review.
• Neutral tribunal: The arbitrator is a neutral third party, often selected for expertise relevant to the dispute.
• Enforcement: Arbitration awards are generally easier to enforce internationally compared to court judgments, making arbitration popular in commercial and international disputes.
• Voluntary vs. mandatory: Arbitration can be voluntary (both parties agree after a dispute arises) or mandatory/forced (required by contract terms, often waiving rights to sue or appeal).
• Flexibility: Arbitration procedures are less formal than court trials, and arbitrators may set their own rules and are not always bound by strict procedural or substantive laws.
• Use cases: Common in commercial contracts, consumer agreements, employment contracts, and international treaties.

In summary, arbitration is a private, adjudicatory process designed to resolve disputes efficiently and with finality, often favored for its enforceability and procedural flexibility compared to traditional litigation.