This has been recognised in several legal systems, and therefore legal rules that regulate arbitration are now part of every modern legal system; international arbitral tribunals are instituted in every region around the world; and international conventions are organising and harmonising the arbitration rules between states.

 

The importance and increasing popularity of arbitration in international business, in preference to litigation, stems from its many advantages. In arbitration, parties hope to use arbitrators who have some technical knowledge of the subject matter of the dispute, which may not be expected in the case of ordinary judges. They expect to settle their dispute in a manner more suited to commercial matters:

 

- they appreciate the fact that in arbitration there will be solemnity and less bureaucracy;

- the procedures will be less rigid and less expensive;
- there will be less publicity and
- the discussion will take place in a more peaceful climate.

 

With growing court congestion, as well as prolonged discovery and motion practice driving up the cost of litigation, arbitration has become an increasingly common solution for business communities to resolve their commercial disputes.

 

Arbitration provides many advantages, particularly that it is more cost-effective and less time-consuming than litigation.  

Inclusion of an arbitration clause in your contracts with customers and suppliers minimises the risk of costly litigation in the event of a dispute. Arbitration consists of a process of user-friendly rules, whereby parties have more control over when, where and how to resolve the dispute. One of arbitration’s greatest advantages, which has added to its increasing popularity over the years, is that an arbitrator’s decision, more commonly known as the award, is final, binding and enforceable in a court of law.