Sonali Awasthi, Symbiosis Law School, Hyderabad
ABSTRACT
Alternative Dispute Resolution denotes to the range of various dispute resolution procedures which are considered to be the best alternative to the lawsuit or litigation. Usually, the dispute resolution procedures take place with the assistance and presence of independent and neutral third party who is unbiased and not related to the dispute. The primary purpose of the ADR is to settle dispute outside the court or conventional judicial system speedily and at a cheaper cost. Every commercial activity in international trade and commerce is often accompanied by a contract which defines the parties' duties in order to prevent unnecessary legal issues and problems. However, no matter how precisely a contract is worded, one of the contracting parties may not comprehend his or her obligations and responsibilities in a unique manner. Traders from many countries frequently participate in international trade and countries with legal systems that differ in numerous respects from one another, poses a challenge that is complex and even contradictory. Each country's law courts have jurisdiction only within the country's territorial bounds. Therefore, the arbitration is considered as the best means for the settlement of disputes between parties from different countries.
