arbitraasit

Arbitraasit are private dispute resolution proceedings in which the disputing parties submit their disagreements to an arbitral tribunal rather than to ordinary courts. They can be domestic or international and are commonly used in commercial, construction, and cross-border disputes. An arbitraasi is typically invoked by an arbitration clause embedded in a contract or by a separate arbitration agreement.

Initiation and composition: After agreement, the parties may designate a seat and choose arbitration rules (for example institutional rules or ad hoc). The parties usually appoint one or three arbitrators, sometimes with the help of an appointing authority. The proceedings involve written submissions, document exchange, and hearings, followed by a reasoned arbitral award.

Award and effect: The arbitral tribunal decides on the merits and issues a binding award. The award generally has the same enforceability as a court judgment in the jurisdictions bound by the applicable treaties, subject to limited grounds of challenge such as lack of due process or excess of jurisdiction.

Enforcement and review: International enforcement is facilitated by the New York Convention, enabling recognition and enforcement across most states. Domestic courts may set aside or resist enforcement only on narrowly defined grounds.

Advantages and limitations: Arbitraasit offer confidentiality, procedural flexibility, and the possibility of expertise in specific areas, as well as neutrality in cross-border disputes. They can be faster or more predictable than litigation, but costs can be high, and the grounds for appeal are typically narrow.

International and national aspects: The seat of arbitration determines the governing procedural law, while the chosen law governs substantive issues. In practice, arbitration combines national legal frameworks with international norms to resolve disputes outside the court system.