Arbitration

Diego Soria A.
23/09/2009
Business Law

Commercial Arbitration Process

Now at days it is difficult to deal with courts and specially in our country were poverty and corruption are the mainissues. Going to court will be a waist of time and money in many cases where solemnity and formality are not necessary, that's why it is very important the arbitration system in our country.[1]Arbitration often allows you to resolve disputes more quickly and cheaply than by going to court. Instead of judges or juries, arbitrators decide if wrongdoing occurred and how to correct or compensateyou for it.

2Arbitrary system has many advantages. The main advantage is that is a more agile procedure than the judiciary, you don't have to assist to a court and wait a lot of time until they callyou to perform a trial. Also, arbitrators are specialized in the matters that are under consideration and have complete independence and impartiality, you won't need to hire a lawyer to be with you.Each and every one of the arbitration proceedings are confidential. It is inexpensive and is more effective than judicial processes, no court and lawyer charges.

The difference between arbitrationand judicial process is that arbitration is distinguished by the lack of solemnity and formality, not like judicial processes. Also the decision of the arbitrators will depend in the will of theparties.

3There are two types of arbitration, arbitration in law and arbitration in equity. Typically if arbitration is in law, the arbitrators must be lawyers, and must decide based on applicablelaw. If the arbitration is in equity, they don't need to be lawyers, and may decide based on equity or fairness, rather than law.

The arbitrary procedure consist in that once the two parties knowthe decision of the arbitrator, the party that lost the dispute has to perform the sentence that is given. The arbitrator can't sentence or obligate the loosing party to perform its sentence.

If...