Two Types of International Arbitration
There are various arbitral institutions around the world that supervise and administer arbitrations. These institutions typically have a formal set of procedures and arbitration rules that disputing parties have chosen to follow through the arbitration process.
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Ad Hoc Abitration
In ad hoc arbitration the disputing parties are responsible for determining and agreeing on their own arbitration procedures, without the administration of an arbitration court.
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Key Elements of International Arbitration
- Arbitration is consensual: Arbitration can only take place if the parties have agreed to it, in the form of an arbitration agreement.
- Arbitrators are neutral: Arbitrators resolving the dispute are independent and impartial.
- Arbitration awards are binding: Arbitration results in an award that binds all parties to the proceedings.
- Arbitration is private: Arbitration proceedings are not public and results are often confidential.
- Arbitration is enforceable: Arbitration awards may be enforced in most parts of the world.
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