A Few Advantages of Commercial Arbitration Law

International commercial arbitration law can resolve disputes within international commercial contracts. Arbitration is a flexible method to resolve disputes with the consent of both parties. If you are looking to sign a contract with another party, you can add a relevant arbitration clause to the contract. The ease of application makes arbitration a preferred option of dispute resolution for parties.

Over the years, arbitration has emerged as a strong and widely accepted method to resolve disputes. Rapid globalisation has increased the volume of international contracts with clauses including international arbitration. This has also improved cross-border commerce and investment. It is useful for foreign companies located in the same country. So, it is not incorrect to say that arbitration has become an international tool to resolve disputes that arise in the business community. As per the report published in ICC, the court registered around 946 cases in 2016. These figures indicate a strong preference for arbitration and a preference for choosing geographically diverse arbitrators. 

What is Arbitration?

Under international commercial arbitration, parties have many rights and benefits. They can select an arbitrator and conduct court proceedings at their convenience. Parties can freely choose an institution like the United Nations Commission on International Trade Law(UNCITRAL) or the International Chamber of Commerce for arbitration. 

Arbitration is a dispute resolution method most suitable for commercial contracts. Parties when inserting an arbitration clause in their agreements can get various benefits from arbitration. They can select the venue, language, arbitrator and the applicable law. Furthermore, we will tell you about some types of arbitration.

Types of Arbitration

1. International Arbitration - International arbitration clause is inserted within commercial contracts when foreign parties are from within the same country. In such cases, foreign laws are applicable to resolve disputes.

2. Fast Track Arbitration - This type of arbitration is an effective solution to solve problems that one has to go through with delayed proceedings. Fast- track arbitration has a stipulated time period of around six months. In this arrangement, one arbitrator is enough to resolve the dispute. It means the arbitrator will only use written submissions.

3. Institutional Arbitration - In this type of agreement, parties are free to choose an arbitral institution. The governing body has the right to choose one or more arbitrators to deal with their case. Furthermore, here are some advantages of choosing arbitration.

Advantages of Commercial Arbitration Law 

1. Confidential -  Confidentiality is one of the reasons to select arbitration. Parties involved in arbitration can get full secrecy until they do not get the judgement. Arbitration help parties conceal sensitive information like trade secrets and intellectual property rights. For the most practical reasons, arbitration proceedings are kept confidential. 

2. Neutral -  The neutral tribunal is the key highlight of the process because parties can choose arbitrators of any nationality.  Arbitration gives access to parties to choose an independent and neutral arbitrator who has a complete hold on the process.  

3. Fast - According to UNCTAD, arbitration is a better approach to dispute resolution than litigation because it is less expensive. It gives focuses on the fast handling of cases. If you do not want to waste your time and money waiting until a court gives judgement over your case, then choose arbitration.

4. Final - Arbitration is binding which means, it gives limited opportunities to either side to appeal. That means disputing parties must adhere to the final decision of the process and cannot challenge the decision in a court. 

Conclusion 

Due to all the above reasons, arbitration dispute resolution has become one of the sought-after procedures in today’s time.  

Choose a unique law firm to help you represent your case under the International Chamber of Commerce or Stockholm Chamber of Commerce. Choose a dedicated service that is committed to providing you with an exceptional and personalized service.