legal relations among business, state, and individuals. As international commercial transactions
accelerate, so do conflicts. Litigation in local courts is generally undesirable to parties in international
commerce for reasons of jurisdiction, lack of acquaintance with the legal system, and concerns over
impartiality. In order to address such issues, international commercial arbitration (ICA) has emerged
as the preferred means for the resolution of international business disputes. It offers neutrality,
flexibility, enforceability, and efficiency, which form the cornerstone of cross-border dispute
resolution.
Defining International Commercial Arbitration
International commercial arbitration is a voluntary, private process in which disputes between
international commerce or trade relations parties are decided upon by impartial arbitrators instead of
national courts. Usage of the term "international" typically transfers when:
1. The parties' business is situated in diverse countries,
2. Commercial transactions with a cross-border nature are involved in the dispute, or
3. International trade, investment, or commerce is involved in the subject matter.
It is governed by domestic arbitration legislation, international treaties, and institutional rules. Awards
(decisions) in arbitration are binding in law and, as distinct from judgments at court, can be enforced
internationally under international conventions like the New York Convention of 1958.
Key Features of International Commercial Arbitration
1. Party Autonomy
ICA is built on party autonomy. Parties can choose the arbitrators, the law applicable to the arbitration,
the seat of arbitration, the rules of procedure, and the language of the arbitral proceedings. The
freedom to act in this way is one of the principal reasons for its popularity.
2. Neutrality
In cross-border disputes, favouritism by foreign courts concerns parties. Arbitration allows the dispute
to be resolved in a neutral forum with arbitrators who are receptive to both parties, and therefore
fears of favouritism are eliminated.
3. Confidentiality
Whereas court hearings are generally open to the public, arbitration hearings are private.
Confidentiality protects business secrets, commercial reputation, and confidential financial
information.
4. Finality of Awards
Read More:
https://www.lawsenate.com/p ...
