Institutional arbitration versus ad hoc arbitration: Chinese and Iranian perspectives

Both institutional arbitration and ad hoc arbitration have advantages and disadvantages. Ad hoc arbitration which is not administered by any institution requires the parties to make their own arrangements for selecting the arbitrators and designating applicable law and rules of procedures; however, institutional arbitration takes place within the organizational framework of an arbitral organization. This paper, through doctrinal research method and comparative study of the two legal systems, aimed at evaluating these methods of arbitration in two legal systems. Iran has not explicitly introduced institutional arbitration into its legal system and China does not recognize ad hoc arbitral awards. This paper suggested that Iran should introduce institutional arbitration due to its numerous advantages and China is suggested to recognize ad hoc arbitration to respect free will of the parties.