Rattsakuten - Law Firm in Sweden
Added: (Thu Apr 21 2022)
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Top 5 Reasons To Choose International Commercial Arbitration
Anyone thinking of arbitration needs to know its importance and reasons for choosing it. It is different from traditional court proceedings and is a widely accepted process of dispute resolution. It is a process in which an arbitrator is selected mutually by the parties to handle a dispute. An arbitrator can make a binding decision on the dispute to which parties need to agree without delay.
As per the UNCTAD, since the pandemic, governments worldwide responded to the health threat by inducing lockdowns and travel bans to reduce economic fallout. These measures may welcome and expose governments to legal disputes from foreign investors.
1,023 cases were initiated under investment dispute resolution in January 2020. To date, 120 countries and one economic grouping case are pending for ISDS claim.
Parties have to agree to enter into international commercial arbitration where a neutral tribunal will select an arbitrator to further decide their obligations. Arbitration is different from mediation and litigation. A mediator cannot force parties to accept and follow the judgement. He or she can only recommend outcomes and suggest recommendations. In short, an arbitration tribunal is free to make decisions that are in the best interest of the parties.
Enforcement regimes vary and it is crucial to take into account how to enforce and arbitrate a dispute. To save time and money is one of the essential factors in arbitration. It is not wrong to say that it is a private dispute resolution process where parties have more control over the whole process.
When making decisions in complex matters and negotiating cross border commercial contracts, parties have to pay attention to the arbitration clauses and understand the advantages of the process. Commercial arbitration law saves time, and resources of parties. And gives a neutral and binding solution outside the court. So, let’s find out why to choose it
Reasons To Choose Commercial Arbitration
Binding
international commercial arbitration awards are final and parties have to accept unless they opt for an institutional appeal.
Convenient
Arbitration is one of the convenient processes of dispute resolution. It is not only convenient but is reliable too. You need hearing dates and need to go to court as per their scheduling. They can change from time to time But, hearing dates for arbitration does not change. The uncertainty of trial dates of courts creates inconvenience for a company and other witnesses.
Cost
The process is bespoke and is highly confidential. The hearings in arbitration are short and heard quickly than a traditional court case. Given the cost involved in some court cases, arbitration is the best solution to save costs and time.
Acceptance
Arbitration has wide acceptance and is recognized and enforceable in over 150 countries under the New York Convention.