The Nature of Adjudication, Its Different Kinds and Effects

Document Type : Research Paper

Authors

1 Department of International Trade & Investment Law, Faculty of Law & Political Sciences, ‎University of Tehran, Iran

2 Department of International Trade & Investment Law, Faculty of Law & Political Sciences, ‎University of Tehran, Iran‎

Abstract

Diminishing the negative effects of disputes on the contracts execution process is one of the outstanding features on designing effective dispute settlement mechanisms. A comparative study shows that construction industry, for the first time, has used adjudication for settlement of its disputes, which, in addition to significant advantages regarding swift settlement by a selected third party, satisfies the aforementioned feature to a reasonable level. By lapse of time, adjudication is welcome in other fields of industries, too. In this method, the adjudicator’s decision is principally binding for the disputing parties, until the final determination, which could prevent long intervals in the contract execution process. Adjudication is non-judicial in nature and has distinct characteristics in comparison with other extra/non-judicial methods of dispute settlement. Nowadays, adjudication is not limited to construction contracts. In Iran’s legal system, in addition to suggestion on legislation, this method can be used contractually for the settlement of disputes and its benefits could be utilized.

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