Meaning of Arbitration
The arbitration is an optional as it arises for a legal process , with the purpose of resolving the dispute without resorting to make a common judgment. Arbitration began in the early Middle Ages , when the feudal lords protected any citizen from legal problems, in exchange for their slavery until they had enough money to buy their freedom ; this was considered domestic arbitration. It was banned, but in the year 1789 it appears again, and it has been maintained to this day.
In order for the arbitration to take place, the two parties must agree with the decision , so they must choose an independent third party who will be in charge of resolving the dispute. With the intervention of the third party, that of the court is not necessary , but is required when the decision has to be enforced. Arbitration has several advantages, such as speed , flexibility and agreements can be reached in advance.
There are two types of arbitration , the institutional one , which takes place in institutions, under their own rules, and the independent one , where the arbitrators choose the rules by which they will be governed. Also this other classification, which is used according to the type of judgment that is presented, these are: in law and in equity.
The principles of arbitration are: voluntariness , equality , hearing , contradiction , freedom to configure the arbitration process and confidentiality ; thus explaining that they must have, at all times, the willingness of the two parties to submit to the decisions of a third party, equality in their rights, obligation to present their reasoning, know what they are accused of, determine the parts of the process and keep the whole process secret.