At a glance
Arbitration is a way of resolving disputes in which the parties refer their case to an arbitrator or panel they choose, instead of a court. It is usually faster and confidential, and lets you choose an arbitrator with technical knowledge of the subject. The award is binding and enforceable through the courts.
Which disputes suit arbitration?
Arbitration works especially well for contractual disputes between companies, construction contracts, construction partnerships, shareholder disputes and international contracts — where technical expertise and confidentiality matter.
In Iran, domestic arbitration is governed by the Civil Procedure Code, and international commercial arbitration by the Law on International Commercial Arbitration.
The arbitration clause: written before the dispute
A weak arbitration clause becomes a new dispute of its own. A professional clause should make clear:
- Which disputes can be referred to arbitration
- The number of arbitrators and how they are appointed (and a fallback if a party fails to appoint)
- The duration, seat and language of the arbitration
- The governing law and how the arbitrator's fees are paid
- For international contracts: the arbitral institution and rules
Mediation and settlement
Not every dispute needs a hearing. In many cases, structured mediation and a settlement agreement preserve the business relationship and reduce cost. If settlement is not possible, Karsan's litigation team takes the case forward.
Arbitration with Karsan
- 1
Review of contract and dispute
Analysing the arbitration clause, evidence and claims.
- 2
Referral and appointment
Giving notice of arbitration and proposing or appointing an expert arbitrator.
- 3
Submissions and evidence
Preparing submissions, presenting evidence and attending hearings.
- 4
Award and enforcement
Following service and enforcement of the award through the competent courts.
Frequently asked questions
An award is generally binding and can only be set aside on the limited grounds provided by law (for example, the arbitrator exceeding their powers). That is why choosing the arbitrator and drafting the clause carefully matters so much.
The parties can still agree to arbitration after a dispute arises by signing a separate arbitration agreement.
Arbitration is usually faster, which reduces the cost of time, but the arbitrator's fees must also be considered. For technical, high-value disputes, arbitration is often more cost-effective.