In today's business world, international commercial disputes are characterized by complexity and significant challenges that may negatively impact companies and stakeholders. Therefore, effective means of dispute resolution have become vital to maintaining commercial relationships and ensuring business continuity. Arbitration emerges as a fundamental and effective tool in this context, offering a solution based on justice and flexibility for the disputing parties.
Avoidance of Local Legal Complexities:
In international commercial contracts, legal complications related to local laws and regulations in each country can arise. Since the involved parties may be from different countries, arbitration provides a neutral legal framework through which the parties can resolve disputes without getting entangled in local legal complexities.
Confidentiality and Privacy:
Arbitration operates as a confidential process, conducting sessions and deliberations away from the public eye. This allows parties to maintain the confidentiality of the dispute and refrain from exposing details to the public, thus aiding in preserving the reputation of companies and their commercial relationships.
Expedited Proceedings:
Compared to matters brought before traditional courts, arbitration is often a much faster process. Parties can determine the arbitration schedule and set dates that align with their business schedules, facilitating the resolution of disputes quickly and efficiently.
Expertise and Specialization:
Arbitration typically involves experts and arbitrators with experience in the specific dispute field, whether commercial, industrial, or legal. This means that the dispute will be examined according to expertise and specialization, increasing the likelihood of making objective and balanced decisions.
Enforcement of Awards:
Arbitration awards are considered legally binding decisions in many countries, and in case of non-compliance, they can be enforced under the New York Convention on Arbitration. This means that parties can rely on arbitration as an effective means to achieve the enforcement of decisions and protect their rights.
In summary, arbitration is a valuable and effective tool in resolving international commercial disputes, providing a flexible and neutral legal framework that helps parties reach fair and peaceful solutions while maintaining the continuity of commercial relationships.