There may come a time where your business venture might end in conflict with the party you are transacting with. It may also take so much time, energy, and money to resort immediately to the courts. This is why a lot of businessmen in the country prefer to enter into arbitration in Hungary. Arbitration is a method for settling disputes outside of the court. The parties involved in a dispute agree to settle it through arbitration conducted by at least one arbitrator and bind themselves to the decision. The Hungarian Arbitration Act is the governing law for arbitration cases. The disputes are usually commercial in nature. Our Hungarian lawyers can assist you in an arbitration case.
Hungarian arbitration agreement
Before parties in a dispute resort to Hungarian arbitration, an arbitration agreement between them must be concluded. This type of contract must be in a written form and must unequivocally state that both parties submit their dispute to arbitration. An agreement is also valid if one party requests for arbitration and the other does not reject the jurisdiction of an arbitral tribunal. Our Hungarian law firm can draft an arbitration agreement for you.
Disputes subject to arbitration in Hungary
Not all issues between parties can be submitted for arbitration. Arbitration in Hungary can be resorted to if: one party is professionally engaged in commercial activities and the issue relates to such activity; the subject matter of the conflict can be freely disposed of by the parties; and an arbitration agreement exists. Some non-commercial disputes may not be subjected to arbitration. Such disputes involve family matters, judicial review of administrative matters, collection orders, and labor disputes. Our attorneys in Hungary can represent you in an arbitration case.
Hungarian arbitration tribunal
An arbitral tribunal in Hungary is the body in charge of resolving the issues submitted by the parties to an arbitration agreement. It is comprised of Hungarian arbitrators which may number from one or more persons. Typically, arbitrators number to at least three. Each party selects one arbitrator and, in turn, the selected two choose the third member of the tribunal. The parties can choose any arbitrator as they see fit. The ones disqualified from being an arbitrator are those that are: a. below 24 years old; b. banned, by final judgment, from public affairs; c. under guardianship; and d. sentenced by final judgment to imprisonment.
If you plan on submitting your dispute to arbitration, let our lawyers in Hungary handle the case. They are specialists in the field of arbitration.