Arbitration Process Versus Litigation Essay Example | Topics and Well Written Essays - 3500 words

Arbitration Process Versus Litigation - Essay ExampleThe practice of law that regulates actual arbitrement procedure, next to the specific law or rules that arbitral tribunal has to use in the matter and finally law for recognition and enforcement of the decision of the arbitral tribunal, cognize as an arbitrament award. The laws g all overning arbitration proceedings may be same but it is not necessarily so al bearings. Since most of the international arbitration take place in a neutral country to which neither the arbitrating parties belong. So the law of the proceedings, as applied to the matter of the case and known as substantive or applied law, may be different from the law of enforcement of the award. For example, an arbitral tribunal sitting in England will have English law for a place of arbitration but may need to apply New York law as substantive law1.Compared to the courts of law, arbitration is a primitive way to resolve the issues which is simple because of less form ality and expense. The person deciding the dispute has the qualification that he is accepted for arbitration by two parties.2 For example, two merchants disputing over damage to their goods would turn to and accept the judgment of a third, fellow merchant. Actually such had been a community practice to maintain peace and harmony among members of agate line community3.Why International Arbitration? The answer may come from the fact that sometimes the national law is not sufficient to resolve disputes between contend parties. For e.g. A corporation based in the USA contracts another in Germ any(prenominal). The contract is for setting up a power plant in Egypt with any disputes to be arbitrated in London. Now, if a dispute arises and one of the party refuses to arbitrate or the losing party refuses to carry out the award. No national law nooky resolve the dispute in such case and is an International treaty was necessary to link the national laws and respecting the award (see footno te 1 p. 4).