Abstract
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.
Extract
[...] Expertise: If a high level of technical competence is needed, the parties can select arbitrators who can have this kind of competence. Efficiency: Moreover the arbitrators often spend more time on the case than judges in a court, which make them more efficient. 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. [...]
[...] Article 5 of this convention stipulates: "If the parties have not agreed on the number of arbitrators, one arbitrator shall be appointed unless the administrator determines in its discretion that three arbitrators are appropriate because of the large size, complexity or other circumstances of the case." B. The applicable law in arbitration and conventions As is understood through the word international, the two parties have their habitual residence in two different countries therefore they have to choose the law in which the contract will depend. For the arbitration it is the same. [...]
[...] 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. [...]
[...] 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 New York convention and the applicable law chosen are therefore the legal writing used in the regulation of an international conflict by arbitration. C. The arbitral agreement contains At the end of an arbitration process, and once the arbitrator has give his decision the three parties must sign an arbitral agreement. Here are the main points to be found: Scope of arbitration: The parties must specify the legal problem that have occurred and the different points to be covered during the arbitration. [...]
