International Dispute Resolution - Essay Example

As the paper declares arbitration whether in domestic or international context, is a private system of adjudication by which parties to the dispute decide to resolve their differences outside any judicial system. Invariably, decision handed out in arbitration is final and binding. and the award can be enforced in a national court. The deciding persons who are called arbitrators act as sole arbitrators or multiple arbitrators usually three chosen by the parties. While each party chooses its own arbitrator, where there are two parties, the two arbitrators chosen by them elect a presiding arbitrator and their majority decision will be binding.

The arbitration can be adhoc or administered by an international arbitral institution. If adhoc, there will be no institutional involvement. The rules applicable are that of the institution or those chosen by the parties as the case may be. According to the report findings international commercial arbitration has become the norm for dispute resolution in international contracts. The consent of the parties is the source of power for the arbitrators to decide the dispute. It also limits their power as the arbitrators can decide the dispute only within the scope of the parties’ agreement.

The arbitrators must apply rules, procedures and laws preferred by the parties. This will be set out in the clause of the contract as the agreement for arbitration in the event of disputes.