Arbitration Agreement in Ghana: A Comprehensive Guide
Arbitration is a method of resolving disputes without going to court. It is a flexible and cost-effective process, which can be tailored to the specific needs of the parties. In Ghana, arbitration is a popular means of resolving commercial disputes, and many businesses include arbitration clauses in their contracts.
Arbitration agreement is a contract between two or more parties to submit their disputes to arbitration. It is important to note that an arbitration agreement can be a stand-alone agreement or incorporated into a larger contract. In Ghana, arbitration agreements are governed by the Alternative Dispute Resolution Act, 2010 (Act 798).
Key features of an arbitration agreement
An arbitration agreement must meet certain requirements to be enforceable in Ghana. These include:
1. The agreement must be in writing.
2. It must be signed by the parties or their authorized representatives.
3. The agreement must specify the disputes to be submitted to arbitration.
4. The agreement must specify the number and qualifications of arbitrators.
5. The agreement must specify the place of arbitration and the language to be used.
Advantages of arbitration
Arbitration has several advantages over litigation. These include:
1. Flexibility: Arbitration can be tailored to suit the specific needs of the parties.
2. Speed: Arbitration is often faster than litigation.
3. Confidentiality: Arbitration proceedings are confidential.
4. Cost-effective: Arbitration is often less expensive than litigation.
5. Expertise: Parties can choose arbitrators with expertise in their industry or field.
Enforcement of arbitration agreements in Ghana
Arbitration agreements are enforceable in Ghana under the Alternative Dispute Resolution Act, 2010 (Act 798). This means that if a party breaches an arbitration agreement, the other party can seek to enforce the agreement through the courts.
Conclusion
Arbitration is a popular means of resolving commercial disputes in Ghana. An arbitration agreement is a contract between two or more parties to submit their disputes to arbitration. It is important for businesses to include arbitration clauses in their contracts to avoid costly and time-consuming litigation. If you are considering arbitration as a means of resolving a dispute, it is recommended that you seek legal advice.