Meaning of the term arbitration and Explain three advantages of arbitration as a form of settlement of disputes over the court process

Explain the meaning of the term arbitration and Explain three advantages of arbitration as a form of settlement of disputes over the court process.

Meaning of the term arbitration.

This is a method of settlement of civil disputes out of court by arbitrators or arbitral tribunals that make arbitral awards as opposed to judgement. A dispute may be referred to arbitration by the disputing parties, statute or a court of law. •? Arbitrators may be appointed by the parties, a 3rd party of a court of law on application. Arbitrators enjoy certain powers;

  • An arbitral award may be set aside by a court of law in application,
  • The law on arbitration is contained in the Arbitration Act, 1995.

The advantages of arbitration as a form of settlement of disputes.

  • Time saving

It is a faster method of dispute resolution.

  • It is convenient

i.e. parties are allowed to determine; –

  • Number of arbitrators
  • Venue of proceedings
  • Language to use etc.

 

  • Cheap

The cost of using arbitration as a method of settling dispute is relatively low.

  • Expertise and specialization:

The parties to the dispute have the opportunity to appoint the most qualified or specialized persons to determine their dispute

  • Privacy:

Arbitration tribunals are conducted in private free from undue publicity.

  • Flexibility:

Arbitration tribunals are bound by previous awards. This provides room for exploration.

  • Informality:

Arbitration proceeding are free from legal formalities i.e. they are less technical in approach.



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