Arbitration is an international method of private dispute resolution that is applied in the business community in particular. With arbitration, the parties subject their dispute to an impartial third party (the arbitrator), not being a national court, who can make a binding decision on the resolution of the dispute. The dispute can arise from a contract, but it can also ensue from another legal relationship, for example wrongful act. The parties can unequivocally agree arbitration in advance but also after a dispute has been arisen and exclude intervention of the court. The most important rules and safeguards relating to the procedure are laid down in the New York Convention of 1958. In the Netherlands arbitration is regulated in Book 4 of the Code of Civil Procedure.

In principle, arbitration awards are registered with the district court and upon application the preliminary relief judge can give leave for enforcement, whereby the arbitration awards acquires the same legal force as a judicial judgment. The arbitration award can only be overruled by a national court on a limited number of grounds.

Although arbitration also occurs in an unorganised – ad hoc - form, it is in particular applied in institutionalised form in a number of specific sectors. The arbitration committees and institutes are characterised by a high degree of specific (geared to a specific industry) knowledge and expertise.

TAMARA (www.tamara-arbitration.nl) is an important arbitration institute in the area of trade, transport, shipbuilding and insurance. Parties from all over the world have access to TAMARA arbitration and the parties can appoint their own arbitrator. The arbitrator's nationality is not relevant.