Application of the Pacts Sunt Servanda Principles in the settlement of business Disputes through Arbitration

Abstract

Arbitration is a means of resolving business disputes that is most similar to a court body and is considered to have many advantages over other alternative dispute resolutions. Pacta Sunt Servanda is one of the main principles of Arbitration, which states that the settlement produced in a settlement is binding on the parties, like a law must be faithfully executed. Arbitration must be respected and followed by the parties in addition to their obligation to resolve conflicts through mediation. Pursuant under Article 3 of the Arbitration and Alternative Dispute Resolution Act No. 30 of 1999, if parties to a commercial dispute have engaged in an arbitration settlement, The District Court isn't entitled to make your mind up among the parties. A normative approach to legal principles is used in this work. This research is descriptive-analytical, and it collects secondary data from legal materials such as laws and regulations, literature, and legal documents relevant to arbitration law utilizing a document study data gathering tool, contract law and legal certainty theory, where the research results will be analyzed qualitatively.