Nevertheless, there are certain advantages that are common to a majority of situations and which should be taken into account as a matter of general consideration. Another illustration of the multiplication of recourses which may result from the existence of an arbitration agreement results from the rule of privity of contracts - the rule according to which contracts have no effect on third persons who are not parties to the contract.
In this matter, as in most matters involving the delicate task of anticipating and governing business dealings, decisions made impulsively may easily lead to a disastrous outcome.
Speed Another major advantage of arbitration is the certainty that the dispute between the parties will be resolved definitively upon completion of the arbitration process. Furthermore, the proceedings normally consist of roughly the same stages; namely the initiation of the proceeding, the submission of written memoranda, one or more oral hearings, the taking of evidence and a final conclusion of the deciding authority.
Features[ edit ] International arbitration allows the parties to avoid local court procedures. Motion for Homologation Moreover, in contrast to court decisions, arbitration awards cannot be enforced until they have been homologated.
For instance, they have in common that there is a conflict between two or more parties which is solved by means of a decision of a deciding authority.
Even if the preliminary exception asserting the inadmissibility is ultimately allowed, each party will nonetheless have incurred legal costs which, at times, may not be insignificant, and the entire process will nevertheless have to be repeated before the forum having jurisdiction.
For example, financial statements, income tax returns, market studies, business plans and growth projections, trade secrets, client lists or research and development projects, the confidentiality of which is often safeguarded at great cost and with great care, may become part of the public domain through a single dispute in court where those are deemed relevant.
Appeals[ edit ] Under the New York Convention, Article V provides for seven reasons that a court can use to refuse to enforce an arbitration judgment. These costs obviously include the fees of the arbitrator or arbitrators, but they also include the costs that each party will have to assume for its lawyers.
More Info Available hover Introduction International commercial arbitration is an alternative method of resolving disputes between private parties arising out of commercial transactions conducted across national boundaries that allows the parties to avoid litigation in national courts.
In addition, each party may want to hire one or more experts to help it present and explain the technical facets of its case in a way that is favourable to that party.
Friday, 23 October7: David Rivkin,  who chaired the committee that drafted the rules, has noted that the wide adoption of these rules in international arbitration has led in practice to an unexpected use by common law practitioners to limit disclosure and by civil law practitioners to expand it.
Key Resources for International Commercial Arbitration Specialized news source for monitoring the latest developments in international commercial arbitration. Some other differences are that in most cases the parties can influence the composition of the arbitral tribunal and that there are only limited means to attack an arbitral award once it is rendered.
Conclusion The decision to exclude the ordinary jurisdiction of the courts of law must always be made after careful consideration, in light of the specific circumstances and facts of each situation in which the issue may arise.
Characteristics An arbitration agreement, or conclusive undertaking to arbitrate, is a contract by which the parties undertake to submit a current or future dispute to one or more arbitrators, to the exclusion of the courts.
The New York Convention, more formally known as the United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards, provides for court recognition and enforcement of foreign arbitration decisions, allowing arbitration proceedings to piggyback on the authority of domestic jurisdictions across the world.
The following section shall give a short overview over the main characteristics of international commercial arbitration. Features extracts from arbitral awards issued in disputes administered by the International Court of Arbitration of the International Chamber of Commerce.
The most significant are: Protection from lawsuits[ edit ] Under the New York Convention, if a party to arbitration files a lawsuit in breach of an arbitration agreement, the court is obligated to stay the proceedings.International commercial arbitration is an alternative method of resolving disputes between private parties arising out of commercial transactions conducted across national boundaries that allows the parties to avoid litigation in national courts.
International commercial arbitration is defined not only by whether arbitration is involved, but also whether the arbitration is “commercial”. Therefore, Part 1 continues by discussing the development of “commerce” in the context of international commercial arbitration and why the concept of commerce is important in investment arbitrations.
An arbitration agreement is a contract specifically contemplated in, Characteristics. An arbitration agreement, For example, a construction dispute could be submitted to engineers or architects; a dispute regarding commercial leases could be resolved by a panel comprised of chartered appraisers; and a dispute between shareholders could.
main pattern which, characterise the international arbitration theories are created and governed by the applicable law, which is the creation of the contracting parties’ determination. Therefore the contracts are mainly characterised by: (A) Speed/Flexibility In theory, international arbitration is generally considered to be quicker, more flexible, and less formal than litigation.
Online Arbitration Definition and Its Distinctive Features Farzaneh Badiei Faculté de droit, UNI MAIL, 40 Boulevard du Pont d‘Arve should be considered as two of the main characteristics of such a definition.
In any Law and Practice of International Commercial Arbitration,4th ed. Sweet and Maxwell, London () para et seq. The International Arbitration Institute, headed by Emmanuel Gaillard, was created inunder the auspices of the Comité français de l’arbitrage (CFA), to promote exchanges and transparency in the international commercial arbitration community.Download