Arbitration Law Essay Example | Topics and Well Written Essays - 3000 words

Arbitration Law - Essay Example With the rapid strides made by the world financial and business communities, it has become imperative for businesses to have a proven method of resolving business disputes promptly, expeditiously and constructively. When businesses grow and expand it is natural that disputes will arise. In wake of this, parties often favor a private and informal settlement of disputes, in a businesslike fashion that enable them to further their business interests without strangling their business relationship. It is for such occasions that arbitration is designed—for prompt, pragmatic and efficient resolution of disputes. Arbitration is essentially a process of dispute resolution inspired by ones free will where a neutral third party renders a final and binding decision after the concerned sides have presented their views. This method is particularly useful in international business transactions where parties are often unfamiliar with foreign legal systems. The parties may reside in a number o f different geographic locations, each subject to quite different laws and legal systems. Matters get much more complicated if their transactions involve activities in other jurisdictions, where they otherwise have no presence or familiarity. With stark deviations from a judicial procedure, arbitration is conducted outside the court system by disinterested arbitrators selected by the concerned parties based on the criteria that best suit the nature of the contract.