Arbitration is on the rise and it is no wonder why. First of all, because of globalization. Today, it is simpler to settle a dispute between two parties from different countries through arbitration. Second, digitalization has brought about new opportunities for arbitration.
What are the advantages/disadvantages of arbitration?
Using arbitration gives you many advantages while settling a dispute. It is first of all, faster than litigation in state courts. The parties can also choose their own judges based, for example, on the nature of the dispute, the skills and knowledge of the arbitrators, and trust. Through arbitration, confidentiality is also preserved: business secrecies are protected. The language of the arbitration can be freely chosen (nor as for state courts, where, for example, if you are in Belgium, you’ll have to introduce your case in Flemish in Antwerp or in French in Liège). And last but not least, Arbitration is easier to enforce. Thanks to the NY convention that is recognized all over the world, it can be used wherever you go.
Arbitration’s main disadvantage would be that it is more costly than an ordinary court, mostly because you have to pay for your own judge.
What kinds of arbitration exist?
There are mainly two kinds of arbitration: Institutional and ad hoc arbitrations.
What should an arbitration clause contain?
Here are two examples of how digital arbitration is offering new opportunities. First of all, the European Commission has offered new means to settle a dispute through digital arbitration. For documentary credit as a specific case, a new online dispute resolution tool has also been created :« DOCDEX ». It can be used for a problem in this specific field to help you settle your case.
Arbitration is more efficient and it can be used for different situations. Since arbitration is on the rise today and thanks to digitalization, we can guess that in the future years, arbitration is going to evolve and spread to facilitate dispute settlement.
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