Arbitration

A system of alternative dispute resolution (ie resolution of a dispute otherwise than by a court) in which the disputing parties refer the matter to an arbitrator or a tribunal of arbitrators (usually 3) selected by a process determined in the arbitration agreement. An agreement to arbitrate (or arbitration clause) is often included in a commercial contract. Where that is the case, the courts will generally decline jurisdiction unless and until the matter has first been referred to arbitration.