Arbitration is one of the key forms of Alternative Dispute Resolution (ADR) available to parties seeking to resolve disputes outside of traditional court proceedings. Like negotiation and mediation, arbitration is a private process but unlike them, it is more formal and results in a legally binding and enforceable decision.

As court litigation can often be costly and time-consuming, arbitration has become a preferred method of dispute resolution, due to its efficiency, confidentiality, and flexibility.

Arbitration is both consensual and confidential. A neutral and independent third party, the arbitral tribunal is appointed to hear the dispute and issue a final, binding decision. However, arbitration can only proceed where parties have agreed in advance to resolve their disputes through this process. This agreement is typically set out in an arbitration clause within a contract, or through a submission agreement once a dispute has arisen.