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Why would arbitration be used in cases of international contractual dispute?

Neutrality: A party to an international contract will often wish to avoid resolving disputes through the local courts of another party. Arbitration provides the opportunity for neutral dispute resolution (e.g., with international rules being applied by a multinational tribunal in a mutually acceptable venue).

What is arbitral rule?

(1) The Arbitral Tribunal shall decide the merits of the dispute on the basis of the law(s) or rules of law agreed upon by the parties. In the absence of such agreement, the Arbitral Tribunal shall apply the law or rules of law that it considers most appropriate.

What is international arbitration?

International (Commercial) Arbitration is a method of dispute resolution whereby the parties agree to have their disputes resolved by one or more private individuals, i.e., the arbitrators rather than by a court of law.

Is arbitration good for international contracts?

Particularly in the international contracts area, arbitration is used to bypass the fear (real or perceived) of not getting a fair hearing in another countrys courts, or fear of corruption in such courts.

What are the benefits of international arbitration?

The primary benefits of using international arbitration to resolve a dispute rather than traditional court litigation include: International Arbitration can resolve disputes more swiftly than traditional court litigation since there are only limited appeals from arbitration awards.

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