In the last three decades, international arbitration has experienced a remarkable growth and become an important and widely used instrument in the resolution of international disputes. This paper deals with the main advantages and disad-vantages of arbitration in the context of international contract law and is based primarily on two references: the textbook The Principles and Practice of Interna-tional Commercial Arbitration, by Margaret L. Moses (2008), and the homepage of The International Chamber of Commerce (2013).
Table of Contents
International Contract Law – Advantages and Disadvantages of Arbitration
1. Advantages of Arbitration
2. Disadvantages of Arbitration
3. References
Objectives and Topics
This paper examines the primary benefits and limitations of international arbitration within the field of international contract law, providing a balanced overview to support informed decision-making for businesses.
- Process flexibility and party autonomy in arbitration
- Strategic selection of expert arbitrators
- The importance of neutrality and confidentiality in dispute resolution
- Enforcement mechanisms via the New York Convention
- Structural challenges regarding costs, efficiency, and legal powers
Excerpt from the Book
3. Neutrality:
With regard to disputes arising from international contracts, neutrality is of great importance, as each party will try to prevent the application of the national law of the other party – or in other words to ensure no home-country advantage of the contractual counterparty. Consequently, the proceedings should usually take place in a neutral country. Additionally, the dispute should be determined in line with the national law of a country to which neither party has any links, or according to transnational rules. Furthermore, arbitrators should be selected from different countries and have diverse backgrounds.
Chapter Summary
1. Advantages of Arbitration: This chapter highlights the key benefits of arbitration, including process flexibility, the ability to select specialized arbitrators, and the advantages of confidentiality and finality in legal decisions.
2. Disadvantages of Arbitration: This section explores the potential drawbacks, such as the risk of unfair arbitrator selection, limited appeal rights, lack of coercive powers, and concerns regarding efficiency and diversity.
3. References: This section lists the core academic and institutional sources utilized for the analysis of international commercial arbitration.
Keywords
International Arbitration, Contract Law, Dispute Resolution, Party Autonomy, Arbitrator Selection, Neutrality, Confidentiality, New York Convention, Enforcement, Legal Proceedings, Litigation, Commercial Law, Arbitration Clauses, Cross-border Disputes, Tribunal
Frequently Asked Questions
What is the primary focus of this research paper?
The paper provides an analysis of the benefits and drawbacks of using arbitration as a mechanism for resolving international commercial disputes within contract law.
What are the main thematic areas covered?
The core themes include the procedural flexibility of arbitration, the selection of arbitrators, neutrality, confidentiality, the enforceability of awards, and the comparative inefficiencies of the process.
What is the central research goal?
The goal is to assist businesses in making informed decisions about whether to incorporate arbitration clauses into their international contracts by weighing the relative advantages and disadvantages.
Which methodology is applied in this study?
The paper utilizes a qualitative analysis based on established legal literature, specifically referencing Margaret L. Moses' textbook and guidance from the International Chamber of Commerce.
What topics are discussed in the main body?
The main body details the advantages—such as cost/time management and international award enforcement—and contrasts them with disadvantages, including limited appeal rights and the lack of coercive authority for arbitrators.
Which keywords characterize this work?
The work is defined by terms such as International Arbitration, Party Autonomy, New York Convention, and Dispute Resolution.
How does the New York Convention impact arbitration?
It significantly improves the chances of award enforcement across 149 signatory countries, a benefit not similarly provided to national court judgments through an equivalent international convention.
Why might a business choose litigation over arbitration?
A business might prefer litigation if they require the coercive powers of a state court, seek broader rights for appeal, or if they have concerns regarding the potential for an unfair selection of arbitrators in an arbitration proceeding.
- Quote paper
- Hamed Abbaspur (Author), 2013, Advantages and Disadvantages of Arbitration, Munich, GRIN Verlag, https://www.grin.com/document/263550
