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Ad Hoc Arbitration

Arbitration permits parties to establish a variant procedure (ad hoc arbitration) for exceptional disputes or if the standard rules are too formal. "Made to measure" arbitration can of course be very expensive.

When opting for ad hoc arbitration parties must plan delays, designate arbitrators and define their mission. These tasks can create new obstacles and cause other conflicts.

Therefore it’s easy to understand why institutional arbitration is more predictable and appealing.

Nevertheless, ad hoc arbitration may be useful in negotiations or conciliation when the parties have approved that the mediator incorporate a compromise in an award. The award will be enforced when one party does not respect the compromise, as would any other arbitral decision.

The Institute of Arbitration helps parties and ad hoc arbitrators make enforceable awards.