Private Law Theory

ABSTRACT
This chapter introduces key concepts of international arbitration and distinguishes it from other methods of international dispute resolution.

International arbitration, as a dispute resolution mechanism outside of state courts, based on the consent of parties has a long history stretching from medieval lex mercatoria to modern arbitration institutions. Arbitration’s roots trace back to the Medieval and Renaissance periods, where traders turned to local trade associations to resolve disputes informally, avoiding state courts. Today arbitration plays a significant role in dispute resolution with hundreds of arbitration institutions established around the world and exists alongside other methods of dispute resolution alternative to court litigation (such as mediation, conciliation and expert determination).

The 20th century also saw a rise in specialised arbitration mechanisms, dealing with inter-state, investor-state, sports, maritime, commodities, and other disputes. These arbitration mechanisms share similarities and differences regarding their jurisdiction, appointment of adjudicators, applicable law, transparency, review mechanisms, enforcement prospects and other features.

Special conventions related to the enforcement of arbitration awards make arbitration particularly suitable for international disputes as the prospects of enforcing arbitration awards are often better than those of domestic court judgements. Institutional and ad hoc arbitration have become dispute resolution methods of choice for disputes involving states, private actors or mixed disputes involving public and private actors.

This chapter introduces and defines key concepts of arbitration such as consent, arbitration agreement, jurisdiction, ad hoc and institutional arbitration, seat of arbitration, expedited arbitration, interim measures, arbitrators, applicable law, arbitral awards, enforcement and other related topics.

Kryvoi, Yarik, Key Concepts of International Arbitration in Anna Petrig and Yarik Kryvoi (eds), The Anatomy of International Arbitration (Routledge, draft chapter, forthcoming, 2025).