Arbitration
is a method for resolving disputes that provides an alternative to court
proceedings. It is governed by the Arbitration Ordinance (Cap 341). Before
an arbitration takes place, the disputing parties must agree to take
their dispute to arbitration. An agreement to take any disputes to arbitration
is often made before the dispute arises and is often included as a clause
in
commercial
contracts.
In signing a contract with an arbitration clause, the parties have agreed
that their dispute will not be heard by the court but by a private individual
or a panel of several private individuals (i.e. the arbitrators). Arbitration
is a legal process which results in an award being issued by the arbitrator(s).
The award is final and binding on the parties and can only be challenged
in exceptional circumstances. |