The main purpose of arbitration is to provide an alternative method for resolving disputes outside of traditional court litigation. Arbitration offers several advantages, including:
1. Efficiency: Arbitration proceedings are often faster and more streamlined than court litigation, as they typically involve fewer formalities and procedural delays.
2.Flexibility: Parties have more control over the arbitration process, including selecting the arbitrator, scheduling hearings, and determining the rules and procedures to be followed.
3.Confidentiality: Arbitration proceedings are usually private and confidential, offering parties greater privacy and discretion compared to court proceedings, which are generally open to the public.
4. Expertise: Parties can choose arbitrators with specific expertise or experience relevant to their dispute, ensuring that the decision-makers understand the technical or specialized aspects of the case.
5.Enforceability: Arbitration awards are generally enforceable in the same manner as court judgments, providing parties with a means to compel compliance with the resolution reached through arbitration.
6. Cost-effectiveness: While arbitration may involve certain costs, such as arbitrator fees and administrative expenses, it can often be more cost-effective than prolonged court litigation, especially for complex or high-value disputes.
Overall, the main purpose of arbitration is to offer parties a fair, efficient, and impartial method for resolving their disputes outside of the traditional court system, while also promoting finality and enforceability of the resulting decisions.