Arbitration means an agreement

The arbitration

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The (quasi) judicial solution

In addition to the arbitration process, the so-called arbitration procedure is a possibility to lead interrupted or broken negotiations out of the dead end. Here, too, a third party helps both parties to find new solutions. In contrast to the arbitration process, however, both sides must adhere to the arbitrator's decisions in arbitration proceedings.

Choice of procedure

There are several ways to conduct arbitration:

  • Part-time arbitration boards
  • Industry-specific arbitration
  • dishes
  • Independent individuals
  • lawyers
  • Professional bodies

As a general rule, good arbitration is expensive, but it is usually worth the money. The following applies to the cost calculation: the more experts have to be involved and the more formal agreements are necessary, the more expensive it will be. Therefore, you should inform yourself carefully beforehand.

The referee

Its task is to decide on an agreement that is fair for both sides - and to enforce this decision. Conversely, this means: Neither side may leave the negotiating table without an agreement. In extreme cases, the arbitrator's decisions are carried out with the involvement of the courts.

In order to examine the case to be settled (the "case", as the lawyers say), the arbitrator needs all the information:

  • all the offers on the table,
  • on the status of the negotiations,
  • the previous agreements as well
  • about the dispute (s).

The great advantage of arbitration is that each side is heard confidentially and the decision only goes to the parties concerned. For the opposing parties in the arbitration this means that public attention is avoided in this way. Depending on what the parties are negotiating about, this can even be the decisive impetus for the eventual and finally successful conclusion of the negotiation.

Judicial Enforcement

Judicial enforcement is the last resort if

  • the negotiating partners cannot agree even in arbitration proceedings,
  • the judgments of independent third parties are unacceptable and
  • the mediation and / or arbitration proceedings remain unsuccessful.

It is important to note the following:

  1. Every legal proceeding incurs additional costs.
  2. The dispute will inevitably be made public.

Therefore, it is imperative that you seek legal advice before considering legal action.


  • Arbitration is always recommended if several participants with complicated interests are involved.
  • The arbitrator acts in the role of a judge in arbitration proceedings: you can sue for his award.
  • As a rule, lawyers and consultants are the right people to contact as arbitrators.
  • In principle, a warning should be given against judicial enforcement, not only because of the higher costs, but above all because the conflict is now being made public. The crux of the matter, however, is that, once the negotiation has been continued up to this point, breaking off at this point inevitably leads to a loss of image - for both sides. Therefore, both sides are well advised to find an agreement in arbitration themselves.

How to successfully conclude a negotiation