New legislation concerning arbitration in Guatemala

One of the biggest worries of businessmen and investors is the evident need to ensure their contracts in a confident, secure and effective manner, in order to solve any problems that could come up.

An arbitration process is especially important in Guatemala, where ordinary procedures passing through the courts of law are still far from ensuring that the word of each part will be respected, either voluntarily or in a coercive way.

Therefore, most of the trading contracts can go through arbitration procedures. Conflicts would be solved, not in court, but by an arbitrage committee, previously established in the contract. A great step forward has been made by Guatemalan legislators.

Arbitration is one option which will enable market forces and freedom of choice decide its effectiveness. Anyway, businessmen who set their contracts through arbitration procedures and chooses certain institution to do the job, becomes a consumer asking for a job well done.