When Can Arbitration Be Used

Arbitration can be selected only in intentional private law disputes (for instance, business agreement disputes), and only when parties have agreed to it in writing. Arbitration is often agreed in an arbitration clause in the main contract, but it can also be agreed separately or after a dispute has arisen. Arbitration is mostly used in disputes between companies, where the confidentiality and speed of the procedure and immediate enforceability of the decision are highly significant. In addition, arbitration clauses are commonly used, for example, in shareholders' agreements. Because the costs of arbitration are often higher than the costs of litigation, it is regulated that, for example, a previously made arbitration clause between a consumer and a trader is not binding.