Arbitration is a legally binding method of resolving disputes that is based on contractual agreements. Put simply, the ability of a party to bring a dispute to arbitration is contingent upon the presence of an agreement, known as the “arbitration agreement”, between that party and the other parties involved in the issue, stipulating that the dispute can be resolved by arbitration.
Commercial contracts sometimes have provisions that outline the mechanisms for resolving disputes arising from said contract. If the parties opt for arbitration as a means of dispute resolution, it is customary for the arbitration agreement to be incorporated inside the contractual instrument that outlines the terms and conditions of the commercial transaction. It is also possible for parties to engage in an arbitration agreement after a dispute has arisen. In this article, Arbitration For Contract Disputes, we take a look at the mechanism involved.
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For a free initial discussion on how we can help you if you are involved in a contract dispute, get in touch with us today. We are experienced in dealing with all forms of commercial litigation and the various dispute resolution methods. We will review your situation and discuss the options open to you in a clear and approachable manner. Early expert legal assistance can help ensure you avoid the stress of dealing with these issues on your own. Simply call us on 0345 901 0445 or click here to make a free enquiry and a member of the team will get back to you.
What is the procedure for arbitration?
Arbitration is a structured form of alternative dispute resolution (ADR) that entails a tribunal procedure and the involvement of an impartial arbitrator who carefully considers the arguments presented by both parties involved in a dispute prior to rendering a decision.
The arbitration procedure is typically administered in the form of a tribunal, commonly consisting of either a single arbitrator or a panel of three arbitrators. The arbitrator is responsible for making determinations about procedural and evidential issues. Frequently, the necessity to disclose documents and the potential for cross-examination of witnesses arise, although procedures typically exhibit brevity and informality compared to litigation. The arbitrator renders a definitive judgement on a case, relying on the facts offered by the parties involved. Arbitration is a voluntary process, necessitating the mutual consent of both parties to engage in this dispute mechanism. Furthermore, it is essential for them to establish a prior agreement to adhere to the decision rendered by the arbitrator. In the event of dissenting with the final decision, the opportunity to pursue legal recourse at a subsequent time will be precluded.
The decisions rendered by the arbitrator possess the same legal binding force as a formal judgement. Moreover, it should be noted that pursuant to international conventions, arbitration awards or judgements rendered in foreign jurisdictions possess enforceability in the United Kingdom. Conversely, awards or judgements made in the UK are also enforceable in foreign nations. This statement is applicable to every nation that has ratified the international treaty. The legal framework in the United Kingdom permits the implementation of arbitration awards, both domestic and international, within its jurisdiction.
What does the arbitrator do?
The arbitrator establishes the procedural framework that enables both parties to present their evidence and narrate their accounts. Both parties will also be given the chance to provide a response to the arguments presented by the other party.
The arbitrator collects all relevant evidence presented by both the claimant and the respondent. The evaluation of the complaint is conducted only on the basis of the written claim and the accompanying proof. On certain occasions, either you or the other party may be requested to provide more information. In certain instances within a consumer case, it is possible for the arbitrator to conduct an on-site visitation to examine the goods or services that are the subject of the complaint.
In instances where the case exhibits a high degree of complexity and the available written evidence proves insufficient to render a conclusive determination, the arbitrator possesses the authority to convene a meeting between both parties. The responsibility for determining the appropriate methodology for collecting the requisite facts to render a judgement is with the arbitrator.
The arbitrator has the authority to solicit the assistance of a technical expert to facilitate the decision-making process or to obtain a comprehensive report pertaining to the claim.
How we can help
We have a proven track record of helping clients involved in contract disputes. There can be an array of issues to take into consideration and we will guide you through all the necessary legal due diligence in a comprehensive and timely manner and support and advise you with all the negotiations. We firmly believe that with the right solicitors by your side, the entire process will seem more manageable and far less daunting.
Please click here to find out more about our Commercial Litigation services.
How to contact our Commercial Litigation solicitors
It is important for you to be well informed about the issues and possible implications of a contract dispute. Expert legal support is crucial in terms of ensuring a positive outcome to your case.
To speak to our Commercial Litigation solicitors today, simply call us on 0345 901 0445, or click here to make a free enquiry. We are well known across the country and can assist wherever you are based. We also have offices based in Cheshire and London.
Disclaimer: This article provides general information only and does not constitute legal advice on any individual circumstances.
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