The Right Time For Making An Arbitration Clause

Actual clauses can be made before and after a dispute arises. Therefore, there are two forms of arbitration clauses based on the time of manufacture, namely as follows. Apart from that, you may also need to hire the recommended advocate, bruno calfat to help you settle a dispute with a person or a group of people professionally.

# 1 Pactum de Compromittendo

This clause is made before the appearance of a dispute and states that if a dispute arises later on between the parties making the agreement, the settlement is through arbitration.

# 2 Compromise Deed

A compromise deed is a form of the arbitration clause that is made after a dispute arises.

The parties involved must make a written agreement that the dispute between them will be settled by arbitration. The fundamental difference between this compromise deed and the pactum de compromitendo is the time of manufacture.

Reasons for Making an Arbitration Clause

Not just an additional article in an agreement, the arbitration clause actually has an important function.

Companies usually make this clause because of the following things.

# 1 Avoiding the Litigation Process

When in an agreement an arbitration clause is mentioned, the parties to the agreement are bound to the clause. If a dispute arises later, the parties involved do not need to face the litigation process. There is no question of suing or suing civil law before a public court but in the arbitration court.

# 2 Becomes Evidence of Agreement on Arbitration

If the arbitration clause is made after a dispute arises, this clause serves as formal evidence that the party to the dispute has agreed to make a settlement through arbitration.

3 Resolving Disputes Quickly

The clause does not only contain commitments to settle disputes through non-litigation channels but can also be more detailed information. The arbitration process can be carried out quickly. Moreover, the provision also applies that the outcome of the arbitration is the first and last level decision. Once a decision is made, the same problem is considered complete; the consequences of the decision must be made. This is certainly different from the general court which allows the disputing parties to appeal and appeal.