The main purpose of arbitration is to resolve disputes outside of the court system in a manner that is typically faster, less formal, and potentially less expensive than traditional litigation. It involves the submission of the dispute to one or more arbitrators who make a binding decision on the matter. Key purposes of arbitration include:

1. Efficiency: Arbitration can be quicker than court proceedings due to streamlined processes and flexible scheduling.
2. Cost-Effectiveness: It can be less costly than litigation due to reduced legal fees and expenses associated with court cases.
3. Confidentiality: Arbitration proceedings are private, which can help protect the reputation and business interests of the parties involved.