Arbitration and Partnerships
Partnerships are based on trust and good working relationships. Acknowledging that potential disagreements cannot be resolved must included in any business contract. Resolving disagreements when a resolution cannot be made in a partnership can be resolved using arbitration. Arbitration is a form of final settlement dispute resolution. This allows parties to dispute to avoid issuing legal proceedings in court. Court proceedings is relatively more costly, longer and public.
To ensure that arbitration will be the final form of settlement, all partners must agree to elect arbitration. This is the method of resolving disputes that cannot be agreed between the partners. If the partnership wishes for arbitration to apply to any other contracting relationships, for example employee, suppliers etc., that other party must agree to arbitration as the method of final resolution.
Other benefits of arbitration and the reason why it is most suitable to businesses and partnerships are that it proceeds in private. An arbitrator appointed has specialist knowledge in the area of dispute. It is flexible in terms of the conduct of the resolution including the costs aspect and speed of the resolution. he arbitrators ruling is final and cannot be appealed save for limited circumstances.
Unlike proceedings held in court, arbitration is in private. Thus, commercial sensitivity and personal information is safe and confidential. by this method of final settlement. There are limited circumstances where the arbitration process is handed to the Courts. But, these are very specific and rarely arise. Privacy is arguably the most adventitious and appealing aspect of arbitration for a partnership.
New York Convention
Furthermore, the arbitrators ruling can be enforced across most other jurisdictions. Including Ireland, there are 145 subscribing countries of the New York Convention. The New York Convention of 1958 is the Recognition and Enforcement of Foreign Arbitral Awards. This allows those countries to enforce laws and other settlement agreements reached in other jurisdictions. Thus facilitating international contracts and popularizing arbitration. Arbitration is the most effective method of resolving commercial disputes worldwide.