Arbitration has been defined as that institution through which natural or legal persons may submit, prior agreement of one or more arbitrators, litigious issues, arising or that may arise, in matters of their free disposition according to law.

It is an Adversarial Dispute Resolution Method, through which conflicts are resolved by individuals who do not have the quality of state judges. The neutral third party imposes the solution by issuing an award, which has the same effects as a court ruling

The arbitration can be of law (juris) or of friendly composers, also called arbitrators who fail according to their best knowledge and belief, that is, in equity.


When it comes to Arbitration of Law, the arbitrators will act subject to legal forms and will decide the disputed issues according to positive law.

In effect, the Law Arbitrators resolve the case, in the same way that a Magistrate of Ordinary Justice would. They have a legal character that forces them to support the decision-making in the substantive law.


The arbitrators or friendly composers can dispense with legal norms, both in the processing of the process, and in the substantiation of the award. They fail according to their best knowledge and belief, or according to the old formula "known truth and good faith kept."

They are exempted, by the will of the parties, from being subject to the legal rules of procedure and from applying the solutions provided in the substantive norms for the resolution of the case. In other words, it implies the exclusion of the obligation to apply the rules of law.


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