International Commercial Arbitration Law Assignment

International Commercial Arbitration Law - Assignment Example The paper tells that an international commercial arbitration has been an element of study owing to some of the unique features it is associated with. In the era of globalization, the volume of disputes between parties in trade has increased significantly, and often the judgment provided by the local jurisdiction fails to satisfy the parties to the action. The delay in the procedure of judgment also hampers trade activities between them and becomes significant in determining market conditions. International commercial arbitration tries to solve a few of these problems by providing a mutual solution to the issues on the basis of judgment provided outside the legal framework of either country. In matters of international arbitration, the agreement covering arbitration has gained importance over the years. The method of international arbitration is widely popular for resolving disputes that arise from international commercial agreements and a wide variety of international relationships. The main advantage of international arbitration lies in the fact that parties originating from different backgrounds of culture and legal framework can resolve disputes without the consideration and formalities of the legal systems of their respective countries. Other advantages of international arbitration include the fact that it allows the avoidance of uncertainty and the practices associated with local courts regarding the procedure of litigation so that quick and efficient decisions can be reached and the dispute resolved within a short time. The process of international arbitration also grants a high amount of flexibility to the parties in the process of designing the arbitral procedures. In casesof international commercial transactions, the parties have various choices in including mechanisms for resolving disputes that arise under the contract. If a party in the arbitration remains silent for a period of time, then the disaffected party can initiate legal proceedings in a co urt and can attain jurisdiction over the other with ease (Redfern, 2005: 15). International Commercial Arbitration International commercial arbitration tends to resolve disputesinvolving commercial contracts under the guidance and supervision of a number of international institutions and bodies framing international rules. The popular bodies that deal with the issues are the International Chamber of Commerce and the International Centre for Dispute Resolution. Most of these bodies use the â€Å"terms of reference† to summarize the claims and issues of the disputes in a particular procedure, and this is then signed by the parties before the start of the legal proceedings. One of the important characteristics of international commercial arbitration is that thearbitrators try to mitigate disputes before moving to the courts. The decision imposed by international commercial arbitration is binding on both parties. Another attraction of international commercial arbitration is that distrust of foreign legal systems often influences the parties in the action, as does the anticipated cost of using such legal systems. However, switching to international commercial arbitration reduces these types of risks considerably. Arbitrators have significant