Disputes between companies in the course of business can be settled both amicably or in court and through alternative dispute resolution methods.
One of the fastest, most flexible, and effective alternative methods of resolving disputes between entrepreneurs is arbitration.
Arbitration is an institution vested with the function of resolving disputes between the parties. It may be institutionalized as a permanent body attached to chambers of commerce, unions, associations, or other organizations, where it operates based on the regulations adopted by these institutions.
In order for a dispute to be settled in arbitration, the parties must conclude an arbitration agreement which may take the form of an arbitration clause inserted in the contract or of an independent agreement.
Arbitration courts both in Moldova and abroad usually propose model arbitration clauses to be inserted in the contract. These clauses are designed to give the parties confidence that the arbitration proceedings will be efficient.
Recommendation: Consult in advance the model arbitration clauses recommended by the permanent arbitration institutions. However, interested parties are not obliged to include them in the contract.
