What is the commercial arbitration? According to the Law on Commercial arbitration 2021, the commercial arbitration is defined a method of disputes resolution agreed upon by parties and conducted under the provisions of this Law[1]. Thus, the commercial arbitration is the out-of-court method of disputes resolution created by the agreement of disputing partiers.
People should know conditions of disputes resolution in arbitration when studying the issue of What is the commercial arbitration?, including (i) A dispute shall be settled by arbitration if the parties have an arbitration agreement. An arbitration agreement may be made either before or after a dispute arises; (ii) When one of the parties being an individual to an arbitration agreement dies or loses his/her act capacity, such arbitration agreement remains valid for his/her heir or representative at law unless otherwise agreed by the parties; and (iii) When one of the parties being an institution to an arbitration agreement has to terminate its operation, goes bankrupt, or is dissolved, consolidated, merged, divided, split up or reorganized, such arbitration agreement remains valid for an institution that takes over the rights and obligations of the institution to such arbitration agreement, unless otherwise agreed by the parties[2].
Commercial arbitration’s jurisdiction to settle disputes is an important point to answer the question of What is the commercial arbitration? According to Law on Commercial arbitration 2010, there are three types of dispute belonging to the commercial arbitration’s jurisdiction including (i) Disputes among parties which arise from commercial activities; (ii) Disputes among parties at least one of whom conducts commercial activities; (iii) Other disputes among parties which are stipulated by law to be settled by arbitration[3].
What is the commercial arbitration? Based on the method of creation, the commercial arbitration is classified into ad hoc arbitration and institutional arbitration.
- Ad hoc arbitration is a type of arbitration with creation proceeding agreed upon by the parties[4], established when a dispute arises and ceased when the dispute is concluded. Ad hoc arbitration has no permanent headquarters, no operating apparatus and its own rules of procedure. Therefore, the parties when choosing this type of arbitration must choose arbitrators and arbitration proceedings rules to settle the dispute.
- Institutional arbitration is a type of arbitration by which disputes are settled in an arbitration centre and according to the proceedings rules of that arbitration centre[5]. This type of arbitration is strictly organised, has a regular office and its own list of arbitrators.
The above is an overview of What is the commercial arbitration?. If you have trouble with legal issues regarding What is the commercial arbitration?, please contact us: Phuoc & Partners is a professional consulting firm established in Vietnam which currently has nearly 100 members working in three offices in Ho Chi Minh City, Hanoi, and Danang. Phuoc & Partners. It is rated as one of the leading consulting firms specializing in civil litigation in Vietnam that has leading practice areas in the legal market such as Labour and Employment, Taxation, Merger and acquisition, Litigation. We are confident in providing customers with optimal
[1] Article 3.1 of the Law on Commercial Arbitration 2010.
[2] Article 5 of the Law on Commercial Arbitration 2010.
[3] Article 5 of the Law on Commercial Arbitration 2010.
[4] Article 3.7 of the Law on Commercial Arbitration 2010.
[5] Article 3.6 of the Law on Commercial Arbitration 2010.
