What is Arbitration, it is a form of alternative dispute resolution, is a way to resolve disputes outside the courts. The dispute will be decided by one or more persons, which renders the “Arbitration Award“. An arbitration award is legally binding on both sides and enforceable in the courts.
Legal Definition of Arbitration in Law
Arbitration is a legal technique for the resolution of disputes outside the courts, wherein the parties to a dispute refer it to one or more persons (the “arbitrators”, “arbiters” or “arbitral tribunal“), by whose decision (the “award”) they agree to be bound.
Examples of Arbitration
Arbitration disputes usually arise in deals. Some examples are acquisition and merger, intellectual property, financial services, infrastructure and construction, and purchase and sale agreements. Arbitration is the process that allows both parties to negotiate and settle their disputes.
Types of Arbitration
Arbitration, a form of alternative dispute resolution (ADR) Act, is a way to resolve disputes outside the courts. Non-binding arbitration is similar to mediation in that a decision cannot be imposed on the parties.
Can you go to Court After Arbitration
Binding arbitration is usually final. You cannot go to court and try the dispute again if you don’t like the arbitrator’s decision, except in unusual cases where you can show the arbitrator was guilty of fraud, misconduct or bias. In effect, binding arbitration takes the place of a court trial.
Advantages of Arbitration
Arbitration is often faster than litigation in court, and a time limit can be placed on the length of the process. Arbitration can be cheaper and more flexible, more commercial and less formal than court. Unlike court rulings, arbitration proceedings and arbitral awards are confidential.