When Arbitration Applies
Arbitration works based on party agreement to refer their dispute to an arbitration panel instead of the ordinary courts, whether through an arbitration clause in the original contract or a later agreement after the dispute arises.
Arbitration offers greater flexibility in selecting arbitrators and relative procedural speed compared to court litigation, alongside the confidentiality some commercial parties prefer.
Forming the Arbitration Panel
Arbitration proceedings begin by triggering the arbitration clause or agreeing to refer the dispute, followed by forming the panel by selecting one or more arbitrators as the parties agree.
Enforcing the Award
The arbitral award is enforced after certification by the competent authority, and this certification may require a separate procedure from issuing the award itself.
Who Benefits From Arbitration
Two parties to a contract containing an arbitration clause who have a dispute requiring triggering this clause.
A company that prefers resolving its commercial dispute confidentially away from court litigation.
We help draft this clause under our arbitration service, and connect that with a general review of the contract itself under our contract drafting and review service to ensure the arbitration clause is consistent with the rest of the agreement's terms.
Common Questions
Can arbitration be pursued without an arbitration clause in the original contract?
Yes, parties can agree to arbitration after a dispute arises even without this clause, with both parties' consent.
Is an arbitral award subject to appeal?
Arbitral awards are subject to very limited grounds for challenge compared to judicial judgments.
Practical Takeaway
Drafting a clear arbitration clause from the start provides significant clarity if a dispute arises later, rather than procedural ambiguity added to the underlying disagreement.
Arbitration isn't always faster than litigation, and deserves realistic assessment for each dispute before choosing it.