Arbitration: Court Settlement Of Disputes

INTRODUCTION

From time immemorial, arbitration has been used in the settlement of disputes. Its early development could even be traced to the story of King Solomon and the two prostitutes and this can be seen in 1 kings 3:16-28.

The dictionary defines arbitration as an out of court settlement of disputes, that is, the hearing and determining of a dispute or the settling of differences between parties by a person or persons chosen or agreed to by them. It could also be defined as a process by which parties voluntarily refer their disputes to an impartial third party, an arbitrator, selected by them for a decision based on the evidence and arguments to be presented before the arbitral tribunal. The arbitrator then gives his decision which

On the hand, litigation could be defined as a process whereby a matter is brought before a court of appropriate jurisdiction for the purpose of dispute resolution by the judge. Here, the litigants din not have the choice of picking the judge they want or even the venue because there are already laid down laws guiding court proceedings.

The benefits of arbitration over litigation are vast but only five shall be discussed in this paper.

Saves time. The average business man is in tune with the reality of the phrase, “time is money”. A multi million contract could be won in the sparse of five minutes and millions could also be lost in the sparse of five minutes. It will be difficult for a person to try to sugar coat the

CANDIDATE NUMBER: 139280 frustrating delay in the dispensation of justice. A court case could be in cort for yeasr as seen in ariori v

The Chairmen of the board has agreed to Arbitration but it is not in the contract between the two companies. What do you need to do? Draft the document you would need to enable parties resort to arbitration

Before arbitration can be resorted to by companies, there must be an arbitration agreement or clause in their contract. An arbitration agreement is a written contract in which two parties agree to settle disputes outside of court.

Due to the absence of an arbitration clause in the contract between erganics Nigeria ltd and suppliers Nigeria ltd, a submission agreement would have to be created. A submission agreement can be defined as an agreement by which the parties to a dispute that has already arisen agree that the dispute should be settled out of court. That is, the dispute should be settled through arbitration.

The submission agreement refers to conflicts that have already arisen, though there are some cases where the national law prescribes the creation of a submission agreement despite the existence of an arbitration clause. The submission agreement can include an accurate description of the issues to be arbitrated.

Below is the document needed to enable the parties resort to arbitration:

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