1. Arbitration is consensual

Arbitration can only take place if both parties have agreed to it. In the case of future disputes arising under a contract, the parties insert an arbitration clause in the relevant contract. An existing dispute can be referred to arbitration by means of a submission agreement between the parties. In contrast to mediation, a party cannot unilaterally withdraw from arbitration.

2. The parties choose the arbitrator(s)

The parties can select a sole arbitrator together. If they choose to have a three-member arbitral tribunal, each party appoints one of the arbitrators; those two persons then agree on the presiding arbitrator.

3. Arbitration is neutral

In addition to their selection of neutrals of appropriate nationality, parties are able to choose such important elements as the applicable law, language and venue of the arbitration. This allows them to ensure that no party enjoys a home Court advantage.

4. Arbitration is a confidential procedure

Any disclosures made during that procedure, and the award of arbitration is confidential. A party is restricted to access to trade secrets or other confidential information that is submitted to the arbitral tribunal or to a confidentiality advisor to the tribunal.

Significance of Arbitration

1. Arbitration decides the matters in a significantly lesser amount of time.
2. Arbitration is paving the way for the most effective and the most suitable remedy without having to go through the recourse of the courtrooms.
3. Arbitration is generally the most efficient form of remedy for settlement of disputes amongst the parties.
4. Arbitration does not require any long procedures of the Court for the decisions to be made.
5. Arbitration is cost-efficient.
6. Arbitration is time-saving.
7. Arbitration also permits one to choose their own arbitrators.

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