In the age of globalisation, increasing commercial transactions
and trade is not without the prospect of dispute. To guarantee a
fair playing ground and the continuity of tranquil market space, it
is in commonplace to find dispute resolution clause inserted into
agreement between parties, especially when it involves
multinationals. In the event of breach of the agreement, the
dispute resolution clause defines the path the parties will chart
in resolving their dispute.
Arbitration has emerged as a popular and effective mechanism for
resolving commercial and trade disputes. Arbitration is favourable
to parties because of its neutrality, confidentiality, speed,
flexibility and the awards are easily enforced. The Supreme Court
has held on the effect of arbitral award that "It is very
clear and without any iota of doubt, that an arbitral award made by
an arbitrator to whom a voluntary submission was made by the
parties to the arbitration, is binding between the parties".
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