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Arbitration and UNCITRAL Model Law

Arbitration and UNCITRAL Model Law

Arbitration is a form of alternative dispute resolution in which a neutral third party, known as an arbitrator, hears evidence and makes a decision to resolve a dispute. The decision, called an award, is binding on the parties involved.

The history of arbitration can be traced back to ancient civilizations, where disputes were often resolved by a council of elders or other respected members of the community. In modern times, the use of arbitration as a means of resolving disputes has become more formalized and is often used in commercial transactions and employment disputes. 

The step-by-step procedure of arbitration typically includes the following:

  1. The parties agree to submit their dispute to arbitration. This can be done through a contract or other agreement.
  2. The parties select an arbitrator or a panel of arbitrators. This is typically done by agreement, but in some cases, an arbitration institution may appoint the arbitrator(s).
  3. The parties exchange information and evidence relevant to the dispute. This is known as the discovery process.
  4. The arbitration hearing is held. This can be done in person or remotely, depending on the agreement of the parties and the arbitrator(s).
  5. The arbitrator(s) consider the evidence and arguments presented by the parties and make a decision, known as an award.
  6. The award is binding on the parties and is often final and enforceable in court.

Arbitration procedure may vary depending on the jurisdiction or the rules of the arbitration institution, and that the parties may agree on some other steps or variations to the process.

UNCITRAL Model Law

The United Nations Commission on International Trade Law (UNCITRAL) is a body of the United Nations that is responsible for promoting the harmonization and modernization of international trade law. Among other things, UNCITRAL has developed a number of rules and model laws related to arbitration, which have been adopted by many countries and are widely used in international commercial arbitration.

UNCITRAL's Model Law on International Commercial Arbitration is a set of rules that govern the conduct of international commercial arbitration. It was first adopted in 1985 and has been amended several times since. The Model Law provides a framework for the conduct of arbitration proceedings, including the appointment of arbitrators, the conduct of the arbitration hearing, and the enforcement of awards.

UNCITRAL's Arbitration Rules are also widely used in international commercial arbitration. They provide a set of procedural rules that govern the conduct of the arbitration and are designed to be flexible and adaptable to the needs of the parties.

UNCITRAL's Model Law and Arbitration Rules are widely adopted by countries and often used as the basis for national arbitration laws. This makes them a widely accepted standard in international commercial arbitration. Additionally, UNCITRAL has developed other model laws related to arbitration such as the Model Law on International Conciliation and the Model Law on Recognition and Enforcement of Foreign Arbitral Awards.

Adoption of UNCITRAL laws by a country does not mean that the country has adopted all the laws, but rather that it has adopted the Model Law on International Commercial Arbitration and might have adopted the other laws as well.