With the growth of international trade and commerce, the number of international transactions has increased dramatically. Hence, both commerce parties of a cross-border should consider the need for including dispute resolution mechanisms such as international arbitration in their commercial contract to face the possibility of disputes in future.
The arbitration is a consensual private process in which both parties resolve disputed matter with an impartial third party or adjudicator who will then make the decision based on the evidences and arguments presented.
The neutrality of arbitrators or international arbitration firm is the main aspect of international arbitration has become so popular in solving the conflicts of interest. The international arbitration firm does not attached to either party or any national authority. Thus, the controversy of both parties from different nationality or background can be handled in a more peaceful, rational and satisfactory way.
The enforceability of arbitral awards which also known as binding results should be accepted by the parties of the disputing. Additionally, both parties have to give effect to the arbitration award without any objections or arguments or further appeal to court. Hence, the process of international arbitration is more time effective than court litigations.
Due to the flexibility feature, the arbitration process does not require any procedural rules that are compulsory to be followed. Both parties have a great freedom to make the decision in selecting the arbitrators according to their circumstances as well as scheduling the time and venue.
The confidentiality of arbitration proceedings is essential in keeping the hearing of arbitration privately and securely to prevent the sensitive or high profile projects go public. Apart from this, the evidences, documents and awards also cannot be divulged to other parties to the arbitration.
Go for the international arbitration rather than submit the dispute to a national court of law which is time consuming, costly and more formality of procedural.