Advantages | Disadvantages |
Parties create own process on the basis of agreement between the parties. | Success of arbitration largely depends on arbitrators. |
Arbitrator can be selected on basis of substantive knowledge in respective issues. | In Arbitration, time and cost is affected by poor co-operation and poor process design. |
Arbitration is a confidential proceeding. | In arbitral proceeding, right of appeal is limited. |
It compels proper behavior and may minimize bad faith because it is a formal proceeding. | Sometimes, confidentiality is not suitable for some disputes. |
Rules of procedure can be customized to the process. | Result of arbitration may be uncertain if it is a binding arbitration. |
The Award of Arbitration, whether it will be binding or advisory it depends on the wishes of parties. | Extra expenses for the arbitrators. |
Arbitration is less expensive because it consumes less time. | Opportunity to make it binding or advisory. |