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.
