Arbitration Clause – What It Is And Why It Should Be Included In The Commercial Contract?

What is an arbitration clause?

Commercial contracts often include an arbitration clause. This clause specifies that any disagreements arising from the contract will be resolved through arbitration proceedings. Companies prefer arbitration due to its efficiency and confidentiality, among other benefits.

The arbitration proceedings share similarities with typical court proceedings, involving oral hearings and the admission of written and oral evidence. Despite these parallels, there are noteworthy distinctions that are worth understanding. The following section outlines these differences in detail: