Arbitration is used to resolve conflict diplomatically to prevent a more serious confrontation. In simple words, it is about settling of dispute between two parties by an impartial third party, whose decision the contending parties agree to accept. In international trade, arbitration has become strong and widely accepted. The most important multilateral treaty on international arbitration, the court has developed resolution mechanism specifically conceived for business disputes in an international context. Such disputes have unique challenges, usually because the parties will be of different nationalities, legal and cultural backgrounds.
Arbitration is a flexible process for resolving business dispute in a binding manner. Businesses choose arbitration because of its neutrality, finality, procedural flexibility and the ability to choose arbitration. The first choice, or course, is whether or not to use the services of an international arbitration law firm in the first place. The parties can then choose which kind of arbitration select the place of the arbitration can be faster and less expensive.
International arbitration is neutral in the sense that there does not need link to be between parties place of residence and the place of arbitration. The parties can choose any place of arbitration, any applicable law and any language for the arbitration. The party’s power to choose the arbitration is the major advantage of arbitration. Arbitration can faster and less expensive. Experienced arbitration have developed expertise in designing procedure that maximize time and costs efficiency. Only the arbitrator and parties are permitted to attend, the general public.
Similarly, only the same actors receives copies of documents, submissions and awards that are produced during the arbitration. Goodwill and cooperation are desirable in arbitration as well, but not necessary because the outcome does not depend on parties reaching an agreement. There are several other multilateral and bilateral arbitration that may also facilitate enforcement.