Advantages of
the Arbitration Procedure
- Avoiding the jurisdiction of the courts of law, the parties
submit the dispute to a private juridical body which they trust
.
- The parties participate in the composition of the arbitral
tribunal by the nomination of the arbitrators.
- The dispute is settled by a simplified procedure notified
in advance to both the parties. They are entitled to amend and
accommodate it to the characteristics of the dispute.
- The parties submit the dispute to arbitrators with a
special expertise which the court of law does not always
have.
- The speed is one of the greatest advantages of the
arbitration. The procedure is of one instance. The cases are
settled usually within 6 - 9 months.
- The arbitration awards are final , subject to
enforcement and are stable, because they are subject to recourse
only by a way of a court action.
- The arbitration procedure is cheaper . The fee is
decreasing with the increase of the value of the action. The
expenses for defence, experts, translators, etc., are paid only
in one instance.
- The arbitration procedure is confidential and not
public. So the arbitration is able to avoid deterioration of the
relations between the parties.
- The restrictions for the international jurisdiction of
the courts of law do not apply to the arbitration.
- The correct party to the contract is able to avoid
the necessity, disadvantages, expenses and inequality to go to
law abroad.
- As much as both the parties have submitted their dispute
voluntarily to the arbitration it is more likely to keep their
good business relations.
- The enforcement of the arbitration award abroad is
ensured by the New York Convention to a greater extent than
the enforcement of the decisions of the courts of law abroad.