One of the reasons the Parties may want to consider an alternative process is with the aim to keep the Parties out of court. More specific reasons include:
When a Court process is followed, confidentiality surrounding the dispute may be of concern. Parties, therefore, opt for arbitration proceedings with stricter rules surrounding confidentiality.
Generally, arbitral awards are considered more enforceable and a large number of Countries have, for example, adopted the New York Arbitration Convention.
The Parties may agree on specific rules for appointing experts/arbitrators. If disputes may be of a technical nature, having an expert with relevant experience in the industry may be beneficial.
Arbitration/expert determination may provide for a speedier process.