The first and foremost thing that you need to know is International arbitration is nothing but a method by which you can resolve the cross-border disputes. The thing which makes it a more attractive forum for disputes compared to litigating in contracting parties is the neutrality that it offers. You will be amazed to know that its sophistication continues to develop and also the popularity grows.
Let us understand what happens in arbitration. The parties submit a dispute to an appointed decision-maker, which is known as an arbitrator or the panel of arbitrators commonly known as a tribunal. This process is done just by providing for arbitration in the contract that is the arbitration agreement. Here, one thing should be kept in mind that the agreement should have covered the number of arbitrators, the procedure rules which are likely to govern the arbitration, and also the seat of arbitration.
If you really want to understand how the arbitration works then you should first understand the importance of the seat of arbitration. The moment parties agree to arbitration then they should agree to the legal place, the seat of arbitration. Most of the time, it has been noticed that parties also specify the city. Mentioned below are some of the key concepts of arbitration.
· Legislative Framework
You might be aware of the fact that most of the countries have legislation governing arbitrations that mostly take place in their own territory. Here, you must not forget that this does not replace the procedural rules that are select by the parties to govern the arbitration. You can say that it provides a framework based on which the rules operate, and sometimes it also fills gaps that are not addressed in the rules.
While it comes to enforcement, the nationality of the arbitration extends to the award. Thus, you can say that the award of the London seated tribunal will regard none other than English. In addition to it, the selection of seats is also important as it dictates the legislative framework under which the arbitration is going to proceed. You must know that some of the most popular seats selected for international arbitration includes are London, Hong Kong, Singapore, New York, etc.
Characteristics of International Arbitration
There are certain characteristics of international arbitration, like consensual, neutral, choice, Finality, Enforceability, privacy, and confidentiality. These are some of the main reasons why parties prefer to resolve their dispute through international arbitration.