The essence of an arbitration clause in an agreement is that the parties agree that in the event of a dispute arising between them as regards any aspect of their contract, the dispute shall be settled by a tribunal of their choice. The advantages of this course of action are numerous. It saves costs in the long run. The parties are at liberty to choose their arbitrator. They are more likely to accept the outcome of the process. The procedure adopted in arbitration proceedings is less formal than the regular courts and the usual delays experienced through litigation in court are reduced to the barest minimum.


