What is arbitration? – Arbitration Process is a procedure by which a dispute is submitted, by agreement of the parties, to an arbitrator or to a tribunal of several arbitrators that issues a decision on the dispute that is binding on the parties. In choosing arbitration, the parties opt for a private dispute resolution procedure instead of going to court.
The main characteristics of the arbitration are:
The arbitration is consensual
An arbitration process can only take place if both parties have agreed to it. In the case of future disputes that may arise from a contract, the parties include an arbitration clause in the contract. An existing dispute may be submitted to arbitration through a subjection agreement between the parties. Unlike mediation, a party can not unilaterally withdraw from an arbitration process.