In which scenario might arbitration be used to resolve property disputes?

Arbitration is a process where disputes are submitted to a neutral third party, known as an arbitrator, who makes a binding decision on the matter. This method is often chosen because it allows for a quicker resolution compared to traditional court proceedings and can be less formal. The scenario in which both parties agree to a binding decision aligns perfectly with the fundamental principle of arbitration: it requires mutual consent from the involved parties to settle their disagreement outside of court.

In real terms, if both parties willingly choose to engage in arbitration, they typically do so because they see the potential benefits, such as lower costs, time savings, and the desire for a resolution that is final and enforceable. This agreement to accept the arbitrator's decision is essential for the process to commence, as it emphasizes the necessity of voluntary participation in arbitration.

In contrast, mediation is a different dispute resolution method where a mediator facilitates negotiation between parties but does not impose a binding decision. If mediation has failed, it does not directly lead to arbitration unless both parties subsequently decide to pursue it. Likewise, if neither party is willing to negotiate, there is no basis for initiating arbitration, as that requires some level of agreement to participate in the process. Lastly, while legal proceedings being too costly