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Definition The Arbitration refers to that the two parties, before or after the disputes arise, reach a written agreement that they will submit the disputes which cannot be settled through amicable negotiations to a third party for arbitration. Both parties shall settle the disputes complying with the result of arbitration as the arbitration result has legally binding force. 9.2 Arbitration Characteristics To settle trade disputes, neither a governmental power nor with a coercive jurisdiction. The settlement of the case is based on the will of both parties involved. The parties involved shall sign an arbitral agreement before resorting to arbitration. The parties involved are granted with the right to choose the arbitrators. The procedures of arbitration are simple, settling the disputes more quickly, with a low cost. 9.2 Arbitration Characteristics The settlement of a case is in accordance with the arbitration agreement concluded by both parties, excluding the possibility of resorting to the litigation and the jurisdiction of the court for the disputes. At the same time, the arbitral body and the concerned arbitrators are granted the jurisdiction relating to the case. An arbitral verdict has a legally binding force, and is usually final, and binding upon both parties. 9.2 Arbitration Functions of Arbitration Agreement The both parties involved are bound to the arbitration agreement. If one party breaches the arbitration agreement and has resorts to the court at its own will, the other party may require the court to refuse the case according to the arbitration agreement, and brings the case to the arbitral tribunal for judgment. The arbitration tribunal or arbitrator is granted the jurisdiction of the case concerning the dispute. 9.2 Arbitration Forms of Arbitration Agreement the arbitration agreement concluded before the dispute the agreement for arbitration 9.2 Arbitration Arbitration Procedure Arbitration Application Arbitration Tribunal Formation a
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