Arbitration represents a private form of dispute resolution between parties through the appointment of individuals who serve as arbitrators, and is considered useful for the quick and fair resolution of disputes that may arise from business transactions in the process of trading goods and services.
Arbitration has many advantages for parties involved in a dispute due to: each party being able to have confidence in the arbitrators and arbitration process; guaranteed confidentiality; the speedy adoption of solutions; the lower costs associated with arbitration; and the possibilty of arbitral decisions being recognized internationally.
Arbitration can be organized on an ad hoc basis to resolve a dispute; or it can be institutionalized, being created by or within a permanent institution, working under its own internal regulations and having a specified number of arbitrators.
Arbitration procedures are based on the parties’ arbitration convention, by which parties settle part or all of their disputes that have occured or have the posibility to occur between them. An arbitration convention may exist as an arbitration clause or compromise.
In the Republic of Moldova, arbitration is a relatively new and developing institution. One of the first arbitration laws in Republic of Moldova was Law nr.129/1994 regarding arbitration procedures, which represented an improvement in legislation. Despite being adopted by the government, the law was applied in a reduced way. Currently, arbitration proceedings shall be conducted in accordance with the Law on Arbitration and Law on International Commercial Arbitration, and in accordance with the general rules established in the Civil Procedure Code.
Arbitration is a safe and legal way of settling disputes, recognized by the ECHR as having the status of a court established by law.