Management Notes

Reference Notes for Management

Arbitration – Concept, Features, Importance, Appointment, Power, Disputes & Major Provisions | Business Law


Meaning of Arbitration

As a form of alternative dispute resolution (ADR), arbitration allows parties to resolve their disputes in a private and legally binding manner outside of traditional court systems. An arbitral award is a binding decision made by a neutral third party, known as an arbitrator after the parties submit their dispute to them.

The purpose of arbitration is to resolve disputes in a less formal and more flexible manner than litigation. Parties can determine their own decision-maker, the procedural rules, and the governing law. Arbitration is suitable for a wide variety of disputes, including international, contractual, employment, and construction disputes.

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