WHAT IS ARBITRATION ?
Arbitration is a way to solve disputes or disagreements outside of a regular court. It’s like a private, more informal court process. Here’s a simple breakdown:
- Agreement to Solve Disputes: Parties involved, like people or businesses, agree to solve any future problems through arbitration. This agreement can be part of a contract or a separate understanding.
- Choosing an Arbitrator: Instead of a judge, an impartial person or a group of people (arbitrators) are chosen to listen to both sides of the argument. These arbitrators act like judges but are not official court judges.
- Presenting the Case: Each side gets a chance to present their side of the story, share evidence, and explain why they’re right.
- Arbitrator’s Decision: The arbitrator carefully considers all the information and then makes a decision, similar to how a judge would. This decision is called an “award.”
- Binding Decision: In most cases, the decision made by the arbitrator is final and legally binding, meaning both parties must accept and follow it.
Arbitration is often used in business contracts, consumer disputes, labor issues, and more. It’s chosen because it can be faster, less formal, and more flexible compared to going through a traditional court process. However, it’s important to carefully consider the rules and terms of arbitration before agreeing to it.