When it comes to joint ventures, many companies take the plunge in the hope of expanding their business and earning profit. It is a common business practice among international investors and companies. However, disputes are also common in such ventures where two companies collaborate. Here are the common reasons that lead to conflicts in joint ventures.
- Commercial failure of project
- Profit sharing
- Failure to cooperate by a party
- Implementation of decisions
Usually, companies refuse to go to the local court to settle the dispute, as they do not want the local party to have upper hand with their country’s laws and jurisdiction. Therefore, there is another popular method that many choose – arbitration. Many international arbitration firms work to resolve disputes between two commercial parties. However, why should you trust it? Well, here is the answer.
- You have the right and freedom to appoint an international arbitration lawyer or a panel of them for dispute resolution. You can even determine how the procedure will play out for better and quicker verdicts.
- You can choose arbitrators, who have experience and expertise in solving disputes related to joint ventures from the similar industry.
- You can rely on the neutrality of arbitration firms. They can provide verdict without any biased approach.
- Confidentiality of the whole procedure, verdict and your business’s information is secured with arbitration.
As the aforementioned aspects make it clear, arbitration is a beneficial and convenient dispute settlement method that even the big names in business rely on