The arbitration proceeding is a possible way of an out-of-court hearing and resolution of disputes between the parties outside the conventional courts. By means of arbitration proceeding it is possible to arbitrate virtually all property disputes from all legal areas.

The area of arbitration proceedings in the territory of the Czech Republic is defined in the law no. 216/1994 Code of the arbitration proceedings and of the execution of the award (further LAP) By the statutes of § 2 LAP there applies that the parties can agree that their property disputes, otherwise within the legislature of general courts, can be resoluted by one ore more arbitrators  or a permanent arbitration court. The parties can include a written agreement of the arbitration proceedings into their contract (purchase contract, contract for work, etc.) or they can decide about the resolution of their disputes in the arbitration proceedings after the dispute arises, by means of making an arbitration contract.

The arbitration proceedings can adopt two forms, either the proceedings in front of a permanent arbitration court or as an arbitration proceeding „ad hoc", outside the institution. Its appointment and the proceedings itself is controlled by the rules of procedure of the service organization associating arbitrators. Relevant is credibility and expertness of the appointed arbitrators. They can be individuals, adult and legally competent. They must be independent and impartial. They are obliged to avoid all unnecessary formalities during the proceedings and watch that all the disputed parties have the same opportunities to enforce the law.

Major advantages of conducting and resolution of the disputes followint the contractual agreement by the arbitration proceedings are:

1.    Speed -  unlike general courts, where the proceedings from presentation to final order last in many cases extremely long, in the arbitration proceedings  the award can be issued in a very short time after the presentation.

2.    Single instance -  by issuing the arbitration award and its delivery to the disputed parties the award is lawful and prosecutable, no appeal is allowed and it can serve as an execution title.

3.    Closed procedure - the arbitration proceeding is not public and in this way also the concerned matters are held confidential and the dispute parties are protected against publicity in  the media.

The Institute of the arbitration proceedings is used mainly by:

Individuals at resolving property disputes, e.g. from contracts of purchase, lease, work, loan, exchange, association, future contracts, at disputes of paying the owing money from drafts, or from the recognition of the debt and so on.
Individuals undertaking by the trade law, or others based on other titles at resolving the property disputes with their business partners and final customers from the contracts of purchase, lease, mandate, consignment, transport, work, dealership, future contracts, in the disputes following from an employment contract of compensation for damages or from agreements on material responsibility, in the disputes about paying the owing money from drafts or from the recognition of the debt and so on.
Corporation and cooperatives, such as housing associations, real estate agencies, advertising companies, travel agencies, insurance houses, savings banks and others at resolving disputes with business partners and especially with final customers from the contracts of purchase, hire in connection with not paying the rent, insurance, lease, intermediary, mandate contracts, contracts for work, of dealership, future contracts and others.