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Disputes are hard to avoid in commercial activities. And to resolve that dispute, the involved parties have many choices. The following post of T2H Lawyers will help you compare, provide the pros and cons of the dispute settlement via commercial arbitration and courts.


1.The basic concept of methods to settle commercial disputes via commercial arbitration and courts.

Commercial arbitration is a method of settling issues related to commercial, protect consumers agreed by the parties to handle via a third party. Such third party is called Commercial arbitration. When resolving a dispute via this method, the involved parties must comply with the decision of the commercial arbitration.

Dispute settlement via court is a method of settling disputes at state procedural agencies which comply with the strict procedures specified in the Procedure Code of each different State.


2.Comparison about the advantages of commercial arbitration and courts:

a.Advantages of dispute settlement via commercial arbitration:

– Be flexible because of being built on the principle of free agreement between parties;

– Consuming less time, minimizing damages likely to arise in the course of a conflict, especially for trade in goods;

– Be practive in terms of time, location, language, applicable laws and the rules of arbitration;

– Be able to incorporate additional methods as conciliation, intermediary or agreement at any time in the dispute resolution process;

– The arbitral award is the final decision, the parties cannot appeal or protest.

b.Advantages of dispute settlement via courts:

– Having trustful legal characteristics, easily exercising the collection of evidence for investigation and verification, and would request for assistance from other agencies and organizations;

– A court’s judgment or decision is a compulsory judgment/decision to be enforced in the whole territory where the dispute is resolved;

– Dispute settlement in courts shall cost lower than other methods;

– Having strict regulation on the procedures and system of the court;


3.Comparison about the disadvantages of commercial arbitration and courts:

a. Disadvantages of dispute settlement via commercial arbitration:

– Having high cost;

– Depending a lot on the goodwill of the parties;

– It is dificult to proceed the investigation, verification and collection of envidence;

– The arbitral award is complied with the evidence and documents provided by the parties, so sometimes it is not really objective;

b.Disadvantages of dispute settlement via courts:

– Settlement time is rather prolonged;

– Must comply with location, language, settlement time in accordance with provisions of law of each country without any agreement;

– Having complicated rigid procedures;

– A court’s decision can be appealed, cancelled, denied to recognize and enforce in another country.


Contact T2H Lawyers for more information.

T2H Law Liability limited company

Head office: G4-4A, Dormitory 708, Lien Ninh, Thanh Tri, Hanoi

Branch office: Floor 4, no.2, 115 Chien Thang Street, Van Quan Ward, Ha Dong District, Hanoi.

Phone: 0242 242 9900 – 0989 656 682

Website: https://t2hlawyers.vn

Email: contact.t2h@t2h.vn – huong.le@t2h.vn

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