Litigation or arbitration is chosen according to the parties' locations, the need for commercial speed and confidentiality, and the ease of enforcement. Jurisdiction, choice of law and language should be set out expressly.
Commercial, technical and international disputes are suitable for arbitration; in some areas, such as family and consumer matters, there are limits. The arbitration clause must be expressly stated in the contract.
It offers speed, confidentiality, expert arbitrators and ease of international recognition. With its flexibility in evidence and procedure, it is preferred in commercial disputes.
Arbitration is the resolution of a dispute by the parties before an arbitrator under a private procedure; it offers advantages of speed, confidentiality and expertise. It is often preferred in international contracts because of the ease of recognition and enforcement.