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.