Advantages And Disadvantages Of Maritime Arbitration

1708 Words7 Pages
International Maritime Arbitration
Introduction – the essential nature of arbitration and its advantages: Arbitration is one of the many methods of resolving disputes and the same is always based on the agreement between the parties to the dispute. This concept is essential to the understanding of the nature and being of arbitration. Though arbitration is something that is founded on a contract, it is affected both by national legislations and international conventions.
Sanctity of the contract, or pacta sunt servanda, or party autonomy is a basic principle of law and an accepted international legal norm. It specifies the relations of all the parties in international commerce. In its bare and foundation form, arbitration involves two or
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“In the first half of that century, the attempts at unification or harmonisation of commercial law were dominated by maritime law and maritime lawyers. Carriage of goods under bills of lading was an excellent example. The recognition from the 1870s of the fragmentation caused by national legislation counteracting the abuses produced by unbridled freedom of contract practised by shipowners led to the Brussels Conferences in the early 1920s and the establishment of a workable compromise of minimum rights and obligations in the carriage of goods by sea under bills of lading in the Hague Rules. This long and exacting process took over 50 years. At its foundation was the need to qualify unbridled freedom of contract to bring about a fair balance in bill of lading carriage. It illustrated the recognised need for a balance to be struck in the (sometimes competing) demands of commerce: certainty, predictability, party autonomy, despatch and fairness. Attempts at harmonisation have spawned important, private and public bodies. Until the formation of the Intergovernmental Maritime Consultative Council (IMCO) later to become the International Maritime Organisation (IMO) and other United Nations bodies whose activities touch on maritime affairs, the Comité Maritime International (CMI) played the leading role in the development of international conventions and rules concerning maritime
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