In this edition of the 'Crunching Concepts' series, we endeavour to demystify a critical aspect of corporate law - arbitration. As a prominent alternative to traditional litigation, arbitration functions as an efficient and confidential means of resolving disputes.
What is Arbitration?
Arbitration is a process in which a neutral third party, known as the arbitrator, resolves disputes between involved parties. Depending on the agreement, arbitration can be binding, wherein the arbitrator’s decision is final and enforceable, or non-binding, where the decision may serve as advice and is not necessarily implemented. Typically, arbitration is more flexible and informal than litigation, often conducted in confidentiality.
Why is Arbitration Important?
The significance of arbitration largely rests in:
1. Its efficiency and cost-effectiveness relative to traditional court litigation, making it a popular choice in corporate law.
2. The ability of arbitration to foster business relationships by offering a less confrontational and more practical approach to dispute resolution.
3. The ease of enforcing arbitral awards, notably in international disputes, due to international treaties like the New York Convention.
CaseSnappy: A Student's Best Friend
Untangling complex legal concepts like arbitration remains crucial for budding law students and professionals. CaseSnappy is committed to helping you navigate through these intricate principles with our comprehensive and astute summaries. Get started
Interested in improving your grasp on legal peculiarities? Sign up for CaseSnappy for free today and gain immediate access to explanations concerning fundamental legal principles. Stay tuned for our next post in the 'Crunching Concepts' series!
Join our rapidly expanding community of CaseSnappy now by clicking below!