Arbitration vs. Court: The Solution for Commercial Conflicts

Arbitration vs. Court: The Solution for Commercial Conflicts

The traditional judicial system in Mozambique, while robust, faces significant challenges of delay. For high-value commercial contracts, waiting years for a judgment can mean the collapse of an operation. This is where the Arbitration, Conciliation, and Mediation Law (Law No. 11/99) becomes a strategic tool.

Arbitration allows parties to remove their conflict from the public judicial sphere and hand it over to neutral specialists for a quick and binding decision.

Competitive Advantages of Arbitration:

  • Time Saving: Conflicts that would take 5 years in court are resolved in months.
  • Technical Specialization: Arbitrators are chosen for their deep knowledge in the sector in dispute (e.g., construction, finance, or energy).
  • Absolute Secrecy: Unlike judicial processes, arbitration is private, protecting corporate reputation.
  • Enforceability: Arbitral awards have the same legal force as court judgments.

At SD&MP, we strongly recommend including well-drafted arbitration clauses in your commercial contracts. Our team has extensive experience representing clients in national and international arbitration centers.

Don't leave your company hostage to judicial slowness. Consult us on how to structure your conflict resolution clauses.

Don't let your company be held hostage by judicial delays.

Consult us on how to structure your dispute resolution clauses.