Arbitration vs litigation for commercial disputes in SA

In the world of dispute resolution, one of the most fundamental questions should be whether a commercial dispute is resolved in arbitration or in a court of law.

No distinction between domestic and international arbitrations

In order to be enforceable, the parties must record their agreement in writing to arbitrate any existing dispute or any future dispute relating to a matter specified in their agreement. The Arbitration Act makes no distinction between domestic and international arbitrations.

In May 2001 the South African Law Commission (now the South African Law Reform Commission) proposed a new statute for domestic arbitration. Despite widespread support for the implementation of the Law Commission’s recommendations, government is yet to implement changes to the Arbitration Act.