How many times has the refrain, 'see you in court' featured in American movies and television dramas? In reality, the threat often rings hollow. Many real world contracts require the use of an alternative method of dispute resolution such as arbitration, mediation, or even a hybrid of the two.
Arbitration is a creature of contract. This means that parties agree to arbitration, and to forego the use of national courts, in their transaction documents. Although it can take a number of different forms, arbitration is a process by which parties consensually submit a dispute to a private, non-governmental decision-maker, for a binding decision.