Arbitration is a method of conflict resolution that involves a neutral third party, known as an arbitrator, who listens to the arguments of both parties and makes a decision on how to settle the dispute. This approach allows for a quicker and more cost-effective resolution compared to traditional court proceedings. Additionally, the arbitrator's expertise in the relevant field can provide a fair and knowledgeable perspective on the matter at hand. By utilizing arbitration, parties can avoid the lengthy and often stressful process of going to court, making it a valuable tool in resolving financial disputes.
