With the growth of the business and financial world, it is more important for all these companies to have a quick and efficient method to resolve the possible disputes that can occur: this alternative dispute resolution method is the Arbitration. Definition and description of international arbitration: Arbitration is a method often used for resolving disputes. We are talking about international arbitration when it deals with disputes resulting from international commercial agreements or any international relationships.
Arbitration is a voluntary process of dispute resolution where a neutral third party, the arbitrator, gives a final and binding decision after that each side had an opportunity to present its own view of the dispute. Most of the companies use the arbitration when they want to settle a dispute with another company, they indeed want to avoid going in front of national courts that they usually don't know and they want to have a quicker, private and more efficient way to settle their disputes, in order to maintain their business relationship.
The parties should specify in an arbitration agreement or an arbitration clause whether the disputes will be subject or not to the arbitration. The clause has to be inserted in the contract, however the arbitration agreement can be formed during the negotiation of the contract but also after the disputes occurs, and it has to be inserted in the contract as well. Arbitration is not a judicial process; it is not operated by the court system but by impartial arbitrators selected by the parties. International Arbitration can be directed by one or three arbitrators, the site, the format, the scope of arbitration should have been all decided by the parties in the arbitration clause.
[...] The both parties have to agree on the third party that will be the arbitrator. Normally the third party is selected from a different country than the ones were the two other parties have their habitual residence. This is considered as the first step of arbitration resolution meanwhile different situations can occur: -On one part both parties are willing to reach a quick resolution and so come to a quick decision on the nature of the third part. That is the easiest and theoretical way of acting. [...]
[...] The aim is to create an international legal regime that permits the international arbitration agreements to be implemented. In other words, if the sentence of arbitration occurred in a country that is a member of the New York Convention, it may be enforced in another country that also signed the convention Court intervention: In arbitration, it is possible that a court intervention occur if the arbitral tribunal has not been constituted yet, if the parties are unable to decide for an arbitral tribunal and for other reasons. [...]
[...] It is indeed less brutal than going in front of a court. Absence of appeal: In most of the countries, the international arbitration sentence is final and cannot be appealed. It certifies that there will be just one procedure but it is considered as an advantage only if the sentence is well founded. The enforceability of the Arbitration decisions: The sentence of arbitration which took place in one country can be applied in another country. This advantage is reinforced by the New York Convention. [...]
[...] The secrecy and the rapidity to deal with international commercial dispute are the best arguments in favor of international Arbitration. Most of the time arbitration is used to maintain the good relations between the parties. Bibliography United States department of commerce website: www.commerce.gov Proskauer website: www.proskauer.com United Nations Commission on International Trade Law (UNCITRAL) website « Traité de l'arbitrage commercial international » (Litec, 1996) by Ph. Fouchard, E. Gaillard and B. Goldman. [...]
[...] Impartiality: the arbitration allows the parties to choose who will be the arbitrators and decide, whereas if the case was brought in front of one of the party country court, we can have some doubt for the impartiality of the court. Confidentiality: as contrary to the court judgments which are public, the arbitration is totally private, it offers much more confidentiality for all the parties. The will to keep a dispute private is often an important factor in the decision for the parties to choose arbitration. [...]
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