Arbitration

Question 1

What is arbitration?

Answer 1

Arbitration is an alternative method of conflict resolution done out of court. Here parties involved in a conflict employ the help of third parties called arbitrators, and at the end of the case, the arbitrators give the decision called an arbitration award which all the parties must follow.

Question 2

What are the advantages of arbitration?

Answer 2

-> Parties get to choose their arbitrators, this is not possible with litigation
-> Parties get to choose the language they are judged in
-> The process is private and away from the public
-> Arbitration awards are easier to enforce
-> Arbitration is cheaper and less time-consuming than litigation

Question 3

What are the disadvantages of arbitration?

Answer 3

-> There is no possibility for an appeal
-> The arbitrators might not be qualified enough for the case
-> The arbitral award is not binding on the parties
-> The arbitrators cannot directly enforce the arbitral awards
-> One party with powerful lawyers can subject the case to a lot of pressure