What is new in international arbitration?

The modern thoughts of international law doctrine define arbitration as the institution where the case can be settled in an out-of-court way. Today, the International Arbitration mechanism can be realized in any country as the efficient way to settle a dispute between two or more companies that are based in different countries with some benefits like confidence and resolving of conflicts under the law of country that was mentioned in a contract. The main point of creating such mechanism of litigation is the common principle of the law that declares equality of parties.

In the case of litigation in domestic arbitration court, where one party is located, using its regular lawyers, following a familiar procedure and in its own language, it is not so good for the other party who all the difficulties of litigating in an unfamiliar procedure, in a language that may be foreign and may not be the language of the contract, and not being able to use its lawyers who are familiar with the company.

All modern arbitration rules allows deciding on the arbitration procedure and the right to choose an arbitration institution, in which the procedure of settlement of dispute will take place. Any arbitration that takes place in the context of an institution will be conducted in accordance with the rules of that organization. Some arbitration processes can take place without any reference to an arbitration institution and can take place in arbitrations, known as, ad hoc.

There are many reasons why two parties may decide to have an ad hoc arbitration. As the most vivid example of choosing this arbitration process is to involve a limited amount of money because to arbitrate two or more parties’ dispute may be less expensive and cumbersome in ad hoc arbitration than the same process in a permanent institution. The parties may also choose ad hoc arbitration because they were not able to agree on an institution.