#ClientAlert 33/2022

WHY CHOOSE ARBITRATION INSTEAD OF LITIGATION TO SOLVE INTERNATIONAL TRANSACTIONS PROBLEMS?

Disputes are an inevitable occurrence in many international commercial transactions.

Different commercial and legal expectations, cultural approaches, political ramifications and geographic situations are all sources for disagreement and dispute between contracting parties. Genuine differences can concern the meaning of contract terms, the legal implications for a contract, and the respective rights and obligations of the parties. Sometimes parties agree to perform a contract where performance is just not possible.

Extraneous factors and human frailties, whether through mismanagement or ever-expectation, will also interfere with contractual performance or simply because one party failures to pay moneys due under a contract. In these circumstances, parties to international commercial contracts frequently look to arbitration as a private, independent and neutral system.

We hope this information is useful and remains at your disposal for any questions or clarifications.