dispute between two or more parties by exercising the jurisdictional mandate conferred upon it by the latter.” It should be noted that the third party acts in a private capacity and does not represent any public function. The disputing parties agree to refer to arbitration and agree to be bound by the arbitral decision. The arbitrator reviews the evidence in the case and imposes a legally binding decision on the parties. Keutgen defines arbitration as “a form of dispute resolution which is based on private agreement and which leads to a decision having the force of res judicata”. Such a decision is the result of the activity of one or more persons whose power to resolve the dispute arises from the common will of the parties. The most important characteristic by which arbitration is distinguished from other forms of dispute resolution is the binding nature of decisions. Bucher underlines the power of the arbitrator to render “an award which becomes res judicata in the same way as a judgment”. The broadest definition of arbitration was provided by Poudert and Lesson in which it is stated that “arbitration is a contractual form of dispute resolution exercised by individuals, appointed directly or indirectly by the parties, and vested with power to decide the dispute in place of a state court. by rendering a decision having effects similar to those of a judgment. When a dispute arises between the parties and it must be resolved in accordance with a legal procedure. This process must enjoy the confidence of the parties or at least provide a forum acceptable to the parties. Often, parties to an international commercial contract view arbitration as a means of resolving paper disputes or disputes between different countries. National courts follow procedures consistent with national law set by the state. These laws, in the event of an international dispute, may not be suitable to resolve the dispute in question. National courts are generally open to the public; anyone can access it to follow a current case. Another major factor differentiating national courts from arbitration is the rigidity of national legal procedures. National courts follow civil procedures or rules governing the conduct of cases. “The rules of procedure or the code establish the bases of the jurisdiction of the courts, the circumstances in which an action can be brought, which national court has jurisdiction to hear a particular type of dispute, how to initiate proceedings, what documents must be filed, the rights of reply, and how the case, in general, should be conducted”.