unboring the Law
Arbitration is a private consensual method of dispute resolution, where an independent tribunal makes a final and binding Award’.
Arbitration gives the parties control over the proceedings as they can decide their arbitration to be administered by an arbitral institution, or to be ad hoc.
There are advantages and disadvantages to each choice.
With institutional arbitration, the advantages
are that the institution has a set of rules to regulate the proceedings, as it handles the administrative functions.
Like the appointment of the arbitrators, the case management, proceedings, and the payment of fees and expenses.
In addition, an award rendered under a well-known institution may have more credibility in the international community
and the courts.
On the other hand, an ad hoc arbitration is where no institution is involved in administering the case,
which means that the parties are not paying the fees and expenses of the administering institution.
The parties also have the flexibility to craft a procedure that fits their dispute, by drafting their own rules, or using the UNCITRAL Arbitration Rules.
