Latterly, the general arbitration system has been backed by the state courts which will enforce an arbitration award without looking into the details unless the aggrieved party can claim that the arbitrator has erred either in the procedural or substantive law. Currently the UK law on the arbitration system is governed by the Arbitration Act 1996.  In international disputes,  under the New York Convention, most countries in the world have agreed to enforce Arbitration Awards made by arbitrators in other countries.

When a case is brought to a national courts system initially, the general procedure is for the Judge to hear the whole of the evidence for the Claimant followed by the whole of the evidence for the Respondent, all in open court with the parties, their legal representatives and all their witnesses present and, although the judge and the courts are provided free of charge, the other costs can be enormous. However, although the arbitrator has to be paid, if the parties will let him, he has the power under the Act,  to take shortcuts such as receiving evidence by documents on which he can assess in advance what are the key elements of the issues and by making a preliminary Award on the substantive issues so that the quantum can be dealt with separately on the parts which are not agreed (if it is even relevant after the substantive issues are resolved). The usual procedure is to appoint an arbitrator who is conversant with the industry in which the dispute has arisen so that the technical issues do not have to be explained to him in detail. Sometimes, a full hearing is not required at all but even if it is, it can be arranged either on site or at least at a time and place suitable to the parties and more importantly, in private. If complicated legal points are not an issue, legal representation is sometimes not necessary at all, thus saving costs. In summary therefore, arbitration can be simpler cheaper, more convenient to the parties and, although private, it is just as binding as a judgement of the High Court.

All that is necessary is for the parties to enter into a written Arbitration Agreement either after the dispute has arisen or to have one written into an original contract. This agreement will often provide a procedure for the appointment of a suitable arbitrator, sometimes by some independent official body such as the Chartered Institute of Arbitrators.

A typical Arbitration Agreement is given separately.