{LAW}about arbitration and litigation

Litigation
A controversy before a court or a "lawsuit" is commonly referred to as “litigation”. If it is not settled by agreement between the parties it would eventually be heard and decided by a judge or jury in a Court of Law. The decision of the Court is, of course legally binding and all parties concerned must submit to its decision. Litigation is one way that people and companies resolve disputes arising out of an infinite variety of factual circumstances.

Advantages: legally binding / orders can be enforced by law
Disadvantages: high costs / lengthy and complicated process

Arbitration
Arbitration is a legal technique for the resolution of disputes outside the courts, wherein the parties to a dispute refer it to one or more persons (the "arbitrators" or "arbitral tribunal"), by whose decision (the "award") they agree to be bound. It is more helpful, however, simply to classify arbitration as a form of binding dispute resolution, equivalent to litigation in the courts, and entirely distinct from the various forms of non-binding dispute resolution, such as negotiation, mediation, or non-binding determinations by experts.
Advantages: cheaper costs / shorter process
Disadvantages: difficult to enforce the award

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