Importance Of International Commercial Arbitration

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International commercial arbitration: a comparative study of the London Court of International Arbitration and International Chamber of Commerce.

Introduction

Arbitration as a dispute resolution method is used in international relations between states and governed by the rules of Public International Law. My concern in this essay is the Arbitration in International Commercial Contracts governed by the Private Law between individuals or entities dealing in commercial matters. However, I will limit myself to one aspect of arbitration, mainly the institutions rules that govern the arbitration procedures namely the institutional arbitration.

Chapter 1 Arbitration

In this first chapter, I will deal with arbitration in general and international commercial arbitration, starting with its definition and how it was in the past and its advantages and disadvantages considering the two types of arbitration. Additionally I will review some of the major conventions related to this dispute resolution process such as the 1958 New York Convention, and other conventions related to arbitration. It is interesting to know how the arbitration was developed; so that, we can comprehend the significance of arbitration and its current rules.

1.1 Definition

Defining Arbitration is hard, as several writers have proposed various definitions. I will start exploring definitions of other writers, and concluding with my personal definition.
It is important to emphasize that the third party who is deciding the dispute must be neutral. This is what Edward Brunet et al (2006) emphasize in their longer definition of arbitration.
David defines arbitration as “Device whereby the settlement of a question, which is of interest for two or more perso...

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...n always seemed more attractive when the state had no institution in place to adequately settle disputes that arose in society. This is the case today when it comes to international commercial disputes. The judicial power of most countries does not meet the minimum standards to efficiently solve international trade related disputes. This is another good reason why international arbitration has been increasing. In sum, arbitration already has a very important presence in today’s society, and all the trends point to a bigger presence in the future.

Chapter 2 London Court of International Arbitration

The LCIA is the oldest arbitration institution having been established in 1893. It was then known as the London chamber of arbitration. It was restructured in the early 1980s and has since developed an annual case load in excess of 80 new arbitration.

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