Arbitration: An Alternative System for Handling Contract Related Disputes

Among the devices developed to help parties maintain contractual obligations is the adjudicatory system of arbitration. Such systems are replacing the courts, since their reliance on custom permits greater flexibility in decision making and they are considered to be more private, economic, rapid, certain, and conducive to business relationships. A study of commercial arbitration in the textile industry substantiates these views, with the possible exception that arbitration is not always more conducive to business relationships. Arbitration has changed the conditions of contract in modern society by allowing custom, rather than law, to be used in situations where contractual relationships break down. Thus, arbitration works to insure cooperation in modern society.'