ARBITRATION

Arbitration is the out-of-court resolution of a dispute between parties to a contract, decided by an impartial third party (the arbitrator) - This process is faster and more cost effective than litigation.

Commercial contracts will commonly include provision for how disputes relating to that contract are to be resolved. If the parties choose arbitration, the arbitration agreement will generally be part of the document recording the terms of the commercial transaction.

Parties can also enter into an arbitration agreement after a dispute has arisen. One of the attractions of arbitration is that it is typically easier to enforce an award in another country than it is to enforce a court judgment. The arbitration agreement will determine key elements of the process.

For example:

• Will the tribunal comprise one person or three?
• How will the arbitrators be selected?
• Where will the arbitration take place and (possibly different)
• Where will the legal ‘seat’ or place of the arbitration be?
• Will the arbitration be conducted in accordance with the rules of a particular arbitration institution, or will it be ‘ad hoc’?

All these factors can have a significant effect on the time and cost of the arbitration. So, if you are considering entering into an arbitration agreement, come in, call or email info@lieriachamber.org  to speak to one of our experts.