Power of Arbitration Agreement

Arbitration certainly plays a pivotal role in characterizing commercial relations that are of various kinds among individuals, and this, in turn, leads to make arbitration clause contained within contracts so as to settle disputes created by such contracts. It, in a way or another, aims at preventing litigants from recourse to a court of law. Instead, litigants should be fully committed to refer their disputes to a well-trusted arbitrator whose responsibility is to adjust their de facto or potential dispute, and should also be committed to put the arbitrator's judgment into effect. This paper sheds some light on determining the principle of power of arbitration agreement when an original contract is prepared. It provides the definition, the concept and the legal foundation of power of arbitration agreement.