Arbitration may be a sort of alternative dispute resolution (ADR), utilized in place of litigation (going to court) within the hope of settling a dispute without the value and time of a court cage Litigation may be a court-based process that involves a choice that’s binding on both parties and a process of appealing the choice .

The differences between arbitration and litigation involve the processes themselves and therefore the results of decisions on the disputes. Both are formal processes, but arbitration in many cases is a smaller amount costly and leads to shorter settlement times.