Legal Notice vs. Notice for Arbitration
Legal notice and notice for arbitration share multiple similar features but also are different from each other in many ways. It is not a common error to mistake one for the other, and this is entirely due to the distinct features of the two which differentiate one from the other. It is always a good way to juxtapose two similar yet distinct concepts against each other in order to gain a better understanding of both of them. Let us attempt the same.
Similarities vs. Differences
| Legal Notice | Notice for Arbitration | |
|---|---|---|
| Mention of parties | A legal notice mentions the complete details of the parties involved in order to leave no cause for confusion as to the intended recipient of the legal notice. | The complete details of the parties concerned are mentioned in order to identify the entities bound by the arbitration agreement. |
| Relationship Between the parties | There may or may not be a contractual relationship between the parties. | Parties to arbitration already are or upon acceptance of arbitration as the procedure, will become parties to an arbitration agreement, which may or may not form part of a contract between the parties. |
| Basis of Sending the Notice | Legal notices include the mention of the law and statute under which the sender has claimed the remedy. | Notice to arbitration mentions the basis of how and why arbitration has been chosen as the method of dispute resolution. |
| Purpose | To invite the other party to resolve the dispute between themselves and to warn them of the consequences of not complying. | The purpose of a notice of arbitration is to bring the dispute between the parties before the arbitration. |
| Grievance | A legal notice typically mentions the main grievance the sender has with the recipient and all related information and facts. | It includes all the relevant information leading upto the parties invoking arbitration and sending a notice for arbitration to the other. |
| Mention of venue of dispute redressal | In the event the matter is brought before the court of law, such place of institution of proceedings is as per the applicable jurisdiction laws. | The place of arbitration is as per the mutual agreement between the parties and/or as per the arbitration clause in their contract. |
| Mention of Language of Dispute Redressal | A legal notice does not generally specifically mention the language in which the dispute redressal shall take place, whether between them or before the appropriate authority. | The language of notice of arbitration as well as the process of arbitration itself is as per the mutual decision and agreement between the parties, and is hence specifically mentioned in the notice. |
| Mention of the process of dispute redressal | Where the dispute lands before the court of law, the process of dispute redressal shall be as per the procedure laid down by the law. | The parties have the choice to choose the procedure of arbitration for their dispute and hence such a mention is important. |
| Mention of the details of the authority for dispute redressal | It is generally understood that the authority and the name of the person in that authority shall be as per the applicable laws and procedure appointment of such authority. | Notices of arbitration specifically mention the name(s) of the arbitrator which the parties shall be appointing as arbitrator. This also mentions the process of choosing the arbitrator or the arbitrator panel (as the case may be). |
Conclusion
There are different reasons why even the elements common to both are mentioned in the notices as they serve different purposes. The two may seem similar or even the same, they are very different documents, with different purposes and outcomes.