Explain the nature and advantages of commercial arbitration as a means of settling disputes.

      

Explain the nature and advantages of commercial arbitration as a means of settling disputes.

  

Answers


Raphael
This is a dispute resolution mechanism whereby disputes are settled of court by arbitral tribunals
which make arbitral awards as opposed to judgement.
This mechanism is only applicable in the settlement of civil disputes.
The law relating to Arbitration in Kenya is contained in the Arbitration Act, 1995.
This Act repealed the Arbitration Act Cap 49.
This Act applies to both domestic and international arbitration. Under sec 3 (1) of the Act, an
arbitration agreement is an agreement by parties to submit to arbitration on all or certain
disputes arising between them. An arbitral tribunal means a sole arbitrator or a KASNEB
PANEL thereof. An arbitration agreement may take the form of a clause in the contract or a
separate agreement between the parties.
A dispute may be referred to arbitration by:
- The parties to the dispute.
- A court of law, if the parties to the dispute agree
- Statute

Arbitration falls under the purview of alternative dispute resolution mechanisms.

Advantages of arbitration
- Speed: it is faster method of dispute resolution.
- Convenience: parties are free to determine the venue of the proceedings, timing and
the language to use for their convenience.
- Informality: arbitral proceedings are free from legal technicalities which
characterize ordinary courts.
- Cheap: it costs less to see a dispute through arbitration.
- Expertise: parties to the dispute have an opportunity to appoint the most qualified/specialized person to determine their dispute.
- Privacy: arbitral proceedings are conducted in private free from undue publicity.
- Flexibility: arbitral tribunals are not bound by their previous decisions, there is room for exploration.
Less acrimonious: arbitral proceedings tones down the enmity between the parties.
raphael answered the question on April 15, 2018 at 17:25


Next: Explain each of the following rules of Statutory Interpretation; (i) Noscitur a sociis; (ii) Ejusdem generic; (iii) Mischief rule.
Previous: State four acts of commission that may constitute professional misconduct under the Accountants Act (Cap 531) Laws of Kenya.

View More CPA Commercial Law Questions and Answers | Return to Questions Index


Exams With Marking Schemes

Related Questions