Arbitration in Israel
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Although Israel Courts tend to consider representatives contracts each on its merits, not all disputes reach the courts.
It is often stipulated in agency or distribution agreements that the parties shall refer to arbitration in order to settle the dispute. The law governing arbitration in Israel is the Arbitration Law 1968. The Law enables any individual to be appointed as an arbitrator and it does not impose any qualities or qualifications on the arbitrator.
Parties tend to appoint an impartial person as an arbitrator and prefer one who may possess expertise in a particular field. The parties may stipulate in the arbitration agreement the procedure of appointing an arbitrator or an arbitration panel.
The utmost quality in an Arbitrator should be his Legal training, his knowledge of at least the mother languages of the parties, past experience in international trade and representation contracts.
Arbitration is much faster than Court procedures.
The initial cost is higher, taking into account that in both cases you need lawyer representation.
If an arbitration clause is stipulated, then there is no possibility to sue in court.
Only in certain conditions there can be appeal to an arbitrator's decision.
The arbitrator's decision is executable exactly as a court ruling.