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Arbitration Agreement Deutsch

Arbitration Agreement Deutsch: A Guide to Understanding the Basics

An arbitration agreement is a legally binding contract between two parties, where they agree to settle any disputes that may arise between them outside of the court system. This agreement is governed by the rules and procedures of arbitration, which are outlined in detail in the agreement itself. In Germany, an arbitration agreement is known as “Schiedsvereinbarung”, and it is recognized as a valid and efficient way of resolving conflicts.

Why Choose Arbitration?

One of the primary reasons parties may choose arbitration over litigation is the speed at which disputes can be resolved. With arbitration, the parties can avoid the lengthy and expensive court process, and instead, have their dispute heard by a neutral third-party arbitrator. Additionally, arbitration proceedings are generally confidential, providing greater privacy for the parties involved.

Furthermore, arbitration often results in a final and binding decision, which is enforceable by law. This provides a level of certainty and finality that is not always guaranteed in traditional court proceedings. Finally, parties may choose arbitration if they want to select an arbitrator with specific expertise in a particular field; for example, if the dispute involves specialized technical knowledge.

How Does an Arbitration Agreement Work?

An arbitration agreement is typically executed before any dispute arises between the parties. The agreement outlines the terms and conditions of the arbitration process, including the number of arbitrators, the location of arbitration, the governing law, and the language(s) to be used. The parties may choose to include additional provisions, such as the procedures for selecting arbitrators and the types of disputes that can be arbitrated.

Once a dispute arises, the parties will refer to the arbitration agreement to determine the next steps. They will generally agree on an arbitrator or a panel of arbitrators, who will conduct the arbitration proceedings in accordance with the terms of the agreement. The arbitrator will then hear evidence, examine documents, and issue a final and binding decision, known as an award.

Enforcing Arbitration Awards

After the arbitrator issues an award, the parties must comply with it, just as they would comply with a court order. In Germany, the enforcement of arbitration awards is governed by the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards. This means that awards issued in other countries may also be enforceable in Germany.


Arbitration agreements are a valuable alternative to traditional court proceedings, and they are recognized as a valid means of resolving disputes in Germany. The benefits of arbitration include speed, confidentiality, expertise, finality, and enforceability. To ensure that an arbitration agreement is valid and enforceable, parties should seek the advice of a knowledgeable attorney who is experienced in drafting such agreements.