Internationally, Arbitration Has Been the Most Favourable Method for Settlement of Commercial Disputes for Thousands of Years. Its Value Is Recognized by the Court and It’s Governed by Statutes Which Empower Arbitrators

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ISLAMIC UNIVERSITY IN UGANDA
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(KAMPALA CAMPUS)
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FACULTY OF LAW
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NAME
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REG. NO209-053012-01620
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YEAR OF STUDYYEAR IV
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LECTURERS NAMEMR. MODOI MUSA
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Submission date 13TH/MARCH/2013
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Question
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Internationally, arbitration has been the most favourable method for settlement of commercial disputes for thousands of years. Its value is recognized by the court and it’s governed by statutes which empower arbitrators and regulate the process. More recently in Uganda arbitration has become a common method of solving commercial disputes. -------------------------------------------------

Examine the above assertion and clearly highlight the continued relevance of ADR in Ugandan context.

Brown Marriot defined ADR as a method of resolving or attempting to resolve disputes without resorting to the court or arbitration by procedures which are normal. OLIVER L.J (as he then was) defined ADR in CULTS’S V HEAD as the range of procedure which serves as alternative to the adjudication procedure of litigation and arbitration for resolution of disputes, generally but not necessarily involving the intercession and assistance of neutral third party who helps to facilitate such resolution. ADR is a term generally used to refer to informal dispute resolution process in which the parties meet with a professional third party who helps them resolve their disputes in a way that is less formal and often more consensual that is done in the court. Internationally, under Article II, paragraph 1 “Each Contracting State shall recognize an agreement in writing under which the parties undertake to submit to arbitration ….” Nevertheless, the Convention does not define what arbitration is. The term is rarely defined in national laws on arbitration as well. It is not defined in the UNCITRAL Model Law on International Commercial Arbitration as being “unnecessary”, although a definition had been proposed by the Secretariat. It is not so clear that the UNCITRAL Working Group really believed that a definition of arbitration was unnecessary so much as that it would have been difficult to formulate.

In Uganda to fully understand ADR according to Justice G W Kiryabwire during the colonial period the societies considered the use of ADR to solve their disputes the traditional leaders, elder, chiefs usually played the role of arbitration. Traditionally before colonialism, disputes had to be settled amicably and this was close to arbitration. ADR was usually considered to be alternative to litigation and was used as colloquialism for allowing a dispute to drop or as an alternative to violence. In the last decade, ADR has heightened significance in the judicial practice with in the common law jurisdiction. Uganda first got an arbitration Act in 1930 but claimants in Uganda seldom used it. Order 43 first promulgated by general notice provided for arbitration under order of court and this suggests that it is not as new as it sounds under African culture; the use of 3rd parties neutral in the resolution of disputes is still very common to day. ADR in Uganda developed as a result of the United Nations Commission of International Trade Law (UNCITRAL) coming up with doctrines like UNICTRAL...
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