Arbitration award

Imagine you and your friend have an argument and can't agree on how to fix it. You both decide to ask a fair and honest person (like a teacher or parent) to help you find a solution. That person listens to both of you and decides what should be done to solve the problem.

An arbitration award is similar. It happens when two people or companies have a disagreement that they can't solve on their own. They decide to bring in a neutral third-party, called an arbitrator, to help them reach a solution.

The arbitrator listens to both sides of the argument and reviews any evidence they may have. Once they understand the situation, the arbitrator makes a decision on how to resolve the disagreement. This decision is called an arbitration award.

Both parties agree before the arbitration starts that they will follow the arbitrator's decision, just like you and your friend agreed to follow the decision of the teacher or parent in your imaginary disagreement.

The arbitration award is a legally binding decision, which means that the two parties must follow it and cannot change their minds later. This helps ensure that disputes are resolved fairly and efficiently.