Arbitration
Arbitration is a private dispute resolution process, conducted away from public scrutiny. It is a consensual process where the parties submit their disputes for resolution to an arbitral tribunal that usually is composed of one or three arbitrators.
The arbitration agreement is normally included in the principal contract between the parties. However, the parties may consent to arbitration separately in the absence of an agreement.
The arbitral process allows disputants the freedom to appoint their own preferred arbitrators and engage their own counsels as well as decide in the procedure and rules by which the arbitration process is to be conducted.
Types of Arbitration
There are essentially two types of Arbitration:
Institutional Arbitration
An Institutional arbitration is managed by a specialized arbitral institution like IAMCH, and has its own set of rules. The primary advantage of an institutional arbitration is that, parties benefit from an established format for arbitration with a proven track record from an institution which specializes in assisting parties with the arbitral process.
Ad Hoc Arbitration
In an Ad-Hoc Arbitration, the rules of arbitration are set only by parties and the tribunal. An ad hoc arbitration is where the parties do not select an institution to administer their arbitration. The entire process offers the parties an opportunity to be flexible, but with less support.