Arbitration is now a worldwide accepted alternative to court proceedings to resolve disputes. The International commercial arbitration law is a means to resolve the conflict under international commercial contracts with another party. If you disagree with a few things under commercial contracts with a party, you can consider arbitration to resolve disputes cost-effectively. It is one of the efficient and fast methods of handling cases to resolve disputes without going to court.
Typically, arbitration started with the increasing use of it by the business community. Trade associations used it to resolve disputes between members of trade associations. It facilitates prompt and fair resolution of disputes arising under commercial contracts involving parties. Today, many foreign companies prefer to sign a contract these days with a clause specifying that arbitration is a method they will follow in case of a dispute that may arise at any point in time. That means parties can skip court hearings and proceedings when resolving their issues.
Under dispute resolution in international law, the parties can select a sole arbitrator who will cover the entire legal issues between the parties and efficiently resolve the dispute. Although, parties can freely choose United Nations Commission on International Trade Law(UNCITRAL). Arbitration is followed in most cases today because it is better than litigation in many ways. According to the ICC dispute resolution statistics 2020, the court registered 946 new cases in 2016. That indicates an increasing number of arbitration cases as well as appointments of geographically diverse arbitrators.
Parties Have More Control
The arbitration process is different from litigation. The parties decide beforehand many things giving them more flexibility. On the other hand, the regular court follows statutory rules laid by the judicial body. The parties can decide on the arbitral rules, arbitration processes, different types of arbitration, and the place for the proceeding.
Types of Arbitration
- Ad Hoc Arbitration – The parties do not incur extra administrative costs associated with it when they choose an ad hoc arbitration. No institution administer Ad hoc arbitration. Therefore, parties do not benefit from the administrative assistance. But, an ad hoc arbitration is faster and less expensive. All they need to do is agree to adopt an internationally accepted set of arbitration rules for starting the arbitration process.
- Institutional Arbitration – In this form, a specialised arbitral institution provides a procedural framework for the arbitration. Institutional arbitration has its form of administration to assist with the arbitral process
Institutional arbitration is the specialised form of arbitral institution for resolving disputes. It goes by its rules to automatically provide a procedural framework for the arbitration. It also has its form of administration to assist with the arbitral process.
Parties can leverage the advantage of institutional arbitration because it has an established format. It comes from an institution with a proven track record and has already managed several cases and assisted many parties. However, price is the only administrative costs parties incur with this form of arbitration.
Advantages of Commercial Arbitration Law
- Confidential- In contrast to court proceedings, arbitration is a better dispute resolution technique because it can solve disputes privately. That is helpful when it comes to keeping sensitive and personal information out of the public domain and preserving the sanctity of the whole process. Outsiders cannot attend arbitration proceedings to find out the result at the end.
- Neutral – The neutral tribunal is the key highlight of the process because parties can choose arbitrators of any nationality. The process allows parties to appoint a neutral arbitrator and the place of their arbitration proceedings which gives them complete control over the process.
- Fast – According to UNCTAD, arbitration is a better approach to dispute resolution than litigation because it is less expensive. Here the focus is on the quick resolution of cases. If you do not want to waste your time and money to wait until a court gives judgement over your case, then choose arbitration.
- Final Decision – Arbitration is binding which means, it gives limited opportunities to either side to appeal. That means disputing parties must adhere to the final decision of the process and cannot challenge the decision to a court.
Conclusion
The ease of enforcement and procedural flexibility makes arbitration the best dispute resolution process today. If you are looking for flexibility in resolving disputes, do not wait further to get exceptional and personalised service. Contact us by starting initial consultation for a reliable arbitration service.