Arbitration act

Arbitration act

Introduction

Arbitration is a process and is referred to as alternative dispute resolution.ity is a systematic process which is used for the resolution of disputes outside the courts. The parties in the disputes refer to one or more persons to take their decisions. In the process of arbitration, the third party reviews the opinions and evidence of the case and finally makes the decisions. The parties involved in the disputes are legally bound to respect and follow the decisions. Arbitration is applied to cases of commercial disputes especially in international transactions and also in international employment matters.

In international and commercial disputes, arbitration is widely accepted and implemented. In England and Wales, the legislative authority has devised a framework which is known as the arbitration act 1996, which have laid down certain guidelines for the resolution of disputes. The arbitration act has various distinct features and has provided many laws and regulations for the resolution of disputes in international matters. Over the years, the international arbitration community has made many changes in the arbitration process in order to ensure that the aims and objectives of the arbitration act are met in compliance with the provisions set out in the act

The paper will discuss the basic principles and provisions of arbitration act 1996, followed by whether the provisions are fulfilling the needs of organizations in resolving disputes. The paper will also focus on one of the cases and will discuss the consequences for refusing mediate.

Discussion

Over the years, the merchants in England used to resolve their disputes in national and international courts. In the middle ages, there was a strong connection between finance and commercial trade. The international and commercial transactions were based on credit terms and bills of exchange. They bought together the global market for the purpose of trading and also laid down the basis of credit system.

The courts in the community were not developed or implemented to resolve the issue of trading and traders because the courts used to solve the disputes that were over land. The second reason was that contracts and agreements occurred in a foreign country, it became difficult to force the laws. Therefore, the trading communities needed a special tribunal system, which could resolve their disputes and could make decisions fairly outside the court. Therefore, a system of tribunals was created in the middle ages that dealt with commercial and international disputes. This contributed to the resolution of many international commercial disputes. This also led to development of the arbitration act, whose main aim and objective is to resolve the international commercial disputes in the most favorable manner

Provisions of arbitration act

The arbitration act 1996 has formulated certain legal principles and rules which were preserved in the arbitration act and the common law. The significance of arbitration can be judged by its increasing use in the business community for the resolution of many international disputes. With the help of arbitration controversies and disputes are solved more quickly as compared to previous ...