Arbitration agreement

This is an agreement by the parties to a contract (for example a charter )to submit all or some disputes between them in any legal relationship they may have.

The “arbitration agreement” shows that the parties want to be assisted by privately appointed decision- makers rather than be governed by litigation in courts, which are generally public. There may be other advantages of arbitration over litigation such as cost and speed of procedure. Private dispute resolution by arbitration can be subject to the law of certain countries but in some countries, legislation attempts to give the parties unfettered freedom of choice.