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.
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
Arbitration tribunals are conducted in private free from undue publicity.
Arbitration tribunals are bound by previous awards. This provides room for exploration.
Arbitration proceeding are free from legal formalities i.e. they are less technical in approach.