Arbitration is the private resolution of disputes between parties bound to an arbitration agreement in the contract, or otherwise, by obtaining a final and binding termination of the dispute in a decision (award) issued by privately appointed judges (arbitrators).

Disputes must be referred to arbitration if the parties have agreed to an arbitration clause in their contract. This agreement legally replaces the ordinary jurisdiction of the state courts by arbitration. Most national laws, following the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, require national courts to decline jurisdiction and refer a dispute to arbitration if the parties have so agreed.

It is essential to draft the arbitration clause correctly. Many an arbitration has been complicated and some even frustrated by a pathologically drafted arbitration agreement. It is therefore highly advisable to obtain legal counsel before entering into an arbitration agreement. Landolt & Koch will ensure that your arbitration clause is the right one for your contract and your business.