The Pros And Cons Of Arbitute Resolution

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OVERVIEW: Arbitration holds great advantages over litigation; it permits your choice of tribunal, privacy, venue and laws adopted. It allows for quicker dispute resolution intended to cut costs and time while preserving good business and personal relations . Determining the cost of arbitrary sessions is sometimes considered eristic and may prove deleterious to the entire process. I term it the ‘Rose in Thorn Bushes’ concept. QUESTION 1A: With Particular Reference to the Relevant Sections of the Nigerian Arbitration Act, Identify the Rule of Cost. What is Cost? ‘Cost’ signifies the amount payable for a particular service or product. In the context of arbitration, according to The Arbitration and Conciliation Act, it encompasses, ‘Arbitration…show more content…
Any rejection based on unreasonable grounds would be implies to be intent to waste the time and resources of the tribunal and the other party. 4. Where there is a mutual agreement in writing on how the cost should be allocated, the arbitrator may decide to uphold this agreement. Relying on the above stated principle, both parties may agree on how the costs should be shared or borne. This may be included in the length of the contract terms or may be a collateral contract to this effect. (Gentleman’s agreement). On this basis, the arbitrator can depart from the general rule. The foundation of arbitration is mutual consent and agreement of the parties. Unless there is an agreement contrary , the tribunal is obliged to adopt the principle that cost follows the event. Conclusion: Arbitration is a highly important concept, as it is designed for commercial expediency, and the tribunal ensures that there is a binding award. Consequently, the issues as to costs, is a reality in arbitration. The pronouncement of costs can have a critical impact on the overall resolution of a

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