International Commercial Arbitration
International commercial arbitration can be considered a reliable way to resolve disputes arising from international commercial contracts. By mutual agreement, the parties to the contract refer their possible disputes to arbitration. Today, judgement is a relatively constant condition in contracts. The main reasons for this are the following:
Speed of proceedings, low cost, confidentiality of proceedings, no need to refer to the courts of justice, validity of decisions issued by judgement, relatively quick and easy implementation of these decisions.
Due to the complexity of human relations and the sensitivities in business affairs and contracts, the existence of an authority that is proficient and expert in international relations and can resolve the disputes arising from it is felt more than ever.
International Commercial Arbitration
This type of judgement is related to disputes arising from contracts that have international roots and the role of governments is very important in it. Arbitration in these cases requires complete knowledge of international laws and knowledge of the legal systems of different countries; but people who intend to enter the field of international judgement should change their perspective from one-dimensional to multi-dimensional. In such a way that they go beyond the level of their domestic laws and face a wide range of cultures and international laws.
We can see the advantages of domestic arbitration in international arbitration, but some negative points can also be seen in this regard. Such as long distance, the possibility of delaying proceedings due to the distance, being expensive compared to domestic arbitration due to the distance, translation and lawyer fees, etc.
Jurisdiction in Arbitration
One of the important topics in international commercial arbitration is the issue of jurisdiction due to its extraterritorial nature, which party’s law should prevail in resolving disputes. It is possible to solve this problem by including the judgement clause and determining the governing law in the contract.
Advantages of International Commercial Arbitration
1. Easy Implementation of Arbitration Votes
Unlike decisions issued by courts of justice, whose implementation in other countries faces restrictions, there are no strict measures in the implementation of arbitration decisions outside the place of issuance.
2. Non-Publicity of Proceedings
Due to the importance of commercial issues, especially in the international field, and the tendency of businessmen to keep business secrets confidential, a public meeting may reveal the details of non-international contracts and harm businessmen. Therefore, due to confidential and private proceedings, arbitration can be a safe option for businesses that want to protect their business secrets.
3. Fast Handling
In the courts of justice, due to the high volume of existing cases, it is not possible to process claims quickly. The converts may sometimes remain in the processing queue for a long time and finally they are not processed. But arbitration will clarify the final result of existing disputes in the shortest possible time.
4. Low Processing Fee
The costs of proceedings in arbitration are much lower than proceedings in courts. Since arbitration does not have the formalities of court proceedings, it will also be exempt from its side costs. Therefore, the parties can put an end to their existing disputes with a small fee.
Types of Arbitration
A) Organizational Arbitration
In institutional arbitration, the proceedings are entrusted to special institutions that have been formed for this purpose. Among these institutions, we can mention the Chamber of International Arbitration, the Singapore International Arbitration Center, and the London Court of International Arbitration.
B) Case Arbitration
Moreover, In the type of judgment, the handling is left to the Mediator of the parties. The merits of this style of judgement include the reliability of selected judges and much lower costs than organizational judgement.
To Sum Up
The advantages in international commercial arbitration compared to the obstacles in court proceedings have led more people to judgement. People’s desire to arbitrate has led to the establishment of active institutions in this field and the inclusion of judgement clauses in contracts. The expansion of judgement was not only at the domestic level, but today, with the expansion of international relations and cross-border relations, people at the international level are also looking for a reliable and quick authority to deal with disputes arising from their concluded contracts.