Arbitration is the institution through which the parties entrust arbitrators, freely designated by them, with the mission of settling their disputes. Thus, a definition that could be given to the institution of arbitration is that it represents a procedure for resolving a dispute through private justice, within which each party has the right to appoint its own judges (arbitrators).
The purpose of appointing these arbitrators is to pronounce a judgment, which, once pronounced, has enforceable character over the parties.
Advantages of the arbitral procedure:
• Freedom of the parties to choose their arbitrator (judge), which cannot occur within the state judiciary;
• Through the arbitration clause, the parties have the possibility to choose one or more arbitrators, for the purpose of pronouncing a final judgment;
• Arbitration also represents a quick way to settle a dispute between parties, unlike the cumbersome procedure of state justice;
• But the most important reason why the international business community has opted for arbitration and continues to do so is that the justice process unfolds from the outset, from the signing of the contract, according to the will of the parties. In arbitration, the parties decide on the law or legal system that will govern both the contract expressing their will and the method of settling any disputes;
• Parties can establish their own flexible, efficient procedure that meets their needs while also reducing the costs involved in court action;
• Additionally, parties opting for arbitration always consider the private, non-public nature ensured by this form of justice.
What is a compromissoire clause?
The compromissoire clause is a way of concluding the arbitration agreement, whereby the parties agree that disputes arising from the contract in which it is inserted or in connection therewith shall be settled by arbitration, indicating the names of the arbitrators or the method of their appointment. It is included in the very main contract, and its validity is independent of the validity of the contract in which it was included (art. 343 and art. 343^1 of the Code of Civil Procedure).
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Bianca Dan – Attorney at Law
