As a legal institution, the arbitration is an efficient resource alternative to the ordinary Justice for the resolution of conflicts between two or more parties where a third neutral and unbiased party called arbitrator solves the controversy through a binding arbitration award (judgment).
The main features of the Arbitration are:
- Equal opportunities for the parties starting the procedure both public and private.
- Binding for the parties concerned. The arbitration award (decision issued by the arbitrator) is equivalent to a final judgment and is binding for the parties concerned.
- The procedure is fast, simple and inexpensive and is based on the same essential principles of the ordinary Justice.
- Arbitration clauses in contracts: their existence is of vital importance to anticipate and avoid possible conflicts.
- The arbitrator: shall be independent and unbiased. Cannot have a professional, commercial or personal relationship with the parties.
The controversies that can be submitted to the arbitration procedure are under the civil area (civil societies, associations and joint ownerships, condominium property, professional service contracts…), the commercial area (leasing, renting, factoring, foreign trade, commercial sale and purchase…) and in the administrative area (appraised values, indemnifications, construction of contract clauses…).