A pre-dispute arbitration agreement is a tool that is used in enforcing the determination of an anticipated dispute. It is normally included in a contract in the form of a clause called arbitration clause, which in some countries is a legally binding agreement that should any dispute develop, which relates to the contract in any way, it will be decided upon by arbitration. When a disagreement arises, the parties cannot go to court but must arbitrate their dispute. The arbitration clause in the contract should be such that it provides that the decisions of the arbitrators will be legally binding and should also include other provisions such as the process for selecting an arbiter should a dispute arise and the rules governing the conduct of the arbitration process.
Since the United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards of 1958 (New York convention), most arbitration decisions are accepted internationally, and it has become easy for the courts to enforce contracts that have been breached. A large number of arbitration awards have also been recognized internationally. This makes it easy to enforce the decisions of arbitrators in any contract. To challenge the validity of the arbitral clause will not be easy since the aggrieved party must. Bring the proceedings to a court where arbitration is to take place. The judge, in this case, will ascertain whether there was a valid offer and acceptance of the terms of arbitration from which he may decide to award either of the disputers.
Another dispute resolution process that would yield results is a settlement is mediation-arbitration which takes the simplicity of the mediation process and the typical lawsuit-like stringency of arbitration. Mediation arbitration involves shared negotiations of terms of the agreement so that both parties have a settlement that satisfies both of them. Ultimately a negotiated settlement (mediation-arbitration can be the best solution to a dispute that may arise because some of the conventions of United Nations) May not have been ratified by other countries making enforcement of arbitrated solution a real challenge in the international circles. Moreover, other forms of conflict resolution like a mini-trial, summary jury trial, and private trials may not be applicable in cases where the jurisdiction of the court is in question due to divergence of the laws of different countries.