Arbitration: Meaning and Kinds
Arbitration simply refers to the process of solving an argument between people by helping them to agree to an acceptable solution.[1] It is one of the forms of alternate dispute mechanism. The parties to the dispute sign an agreement in which they resolve to settle the dispute outside of court through the process of arbitration. Such an agreement is called an arbitration agreement.
Arbitration is a popular choice for resolving commercial disputes owing to its numerous advantages like arbitration is faster than litigation, allows the parties to the dispute are free to choose their own tribunal for resolving the dispute, confidentiality of proceedings etc.
Following are the different types of arbitration:
In this type of arbitration, an institution is responsible for administering or carrying out the process of arbitration for the parties to the dispute.
The parties to the dispute decide to choose the arbitrator and determine other arrangements for resolving their dispute among themselves.
An arbitration which takes place within the territory of a country where both the parties belong to that country following the same country’s law is known as domestic arbitration.
International arbitration takes places among companies or individuals from different countries following the law of the respective country that may be applicable to the facts and circumstances under the dispute.
International commercial arbitration, as the name suggests, refers to the process of solving disputes related to commercial transactions or activities that take place among the parties to the dispute.
[1] https://dictionary.cambridge.org/dictionary/english/arbitration
