As an arbitrator the neutral must make a binding determination of the dispute. The procedure must be carried out following the procedural rules in force and the decision must be made in accordance with the current substantive law and the Contract in the dispute.

Arbitration is an alternative to litigation and is primarily used in commercial disputes, especially in international disputes, where the parties need a final and binding decision (the Arbitral Award) which eventually may be executed if a party refuses to fulfil the award.

Usually, in Arbitration the parties have – depending on the content of the Arbitration Clause – significant influence in the appointment of arbitrators in whom they have trust – professionally as well as personally.

A Tribunal of Arbitrators consists frequently of three Arbitrators and through the selection the parties can ensure that the Arbitrators have a legal background as well as commercial knowledge and understanding.

Arbitration will usually be private and confidential. The parties can choose the place of the arbitration, the language of the proceedings and the governing law – all depending on the content of the arbitration clause.

The procedure that must be followed during the process is normally decided by the Arbitrators, but often the Arbitrators use the principles in the procedural law in the country where the Arbitration takes place. Within these constraints it is the Arbitrators task to adjust the procedure to the parties need in the specific dispute.

The Arbitrators must decide the outcome of the Arbitration in the form of an award in accordance with the law that governs the Contract. This means that the Arbitrators legal qualifications are crucial.

The advantage of Arbitral Awards in international disputes is that the Arbitral Award eventually may be enforced in almost all countries in accordance with the New York Convention despite the fact that the Arbitral Process has taken place in another country.

There are several options as to how the arbitration could be conducted. The Parties may choose institutional arbitration, where the case is administered by an Arbitration Institution, for example The International Chamber of Commerce (I.C.C.), The London Court of International Arbitration (L.C.I.A.), American Arbitration Association (AAA), Rioarbitration (Brazil) etc. Please find links on the page ”LINKS”.

The Parties may also instead choose so-called “ad hoc” Arbitration where each Party appoints an Arbitrator and where the third Arbitrator, who shall be the Chairman of the Tribunal, is appointed either jointly by the Parties, by the Party appointed Arbitrators or by a third person or institution.