answered on 21/08/2013
Arbitration is a type of alternative dispute resolution. You can resolve a dispute by arbitration only if all the parties to the dispute have consented to it. Such consent can take the form of an arbitration clause in a contract governing the relationship between / among the parties, or in the form of an arbitration agreement signed whether before or after the dispute arose. The dispute in question has to fall within the scope of the arbitration clause or arbitration agreement before it can be resolved by arbitration. Depending on the parties' agreement, the arbitration may be governed by a set of institutional rules or may be ad hoc. The precise procedure to commence arbitration would depend on the institutional rules chosen by the parties (if any) and/or the parties' agreement.