Commercial arbitration represents a recognized means of out-of-court resolution of commercial disputes both in Georgia and beyond its borders. A prerequisite for conducting arbitration is that the parties agree to arbitration in writing (although there are exceptions to this rule). By agreeing to arbitration, two or more parties choose to resolve disputes arising between them - for example, disputes related to breach of contract or compensation for damages - through arbitration, instead of court proceedings. An arbitration agreement, as a rule, constitutes an arbitration clause, which is an integral part of the main contract.

An arbitration agreement is considered valid if it meets the requirements established by Article 8 of the Law of Georgia "On Arbitration". According to the law, the essential conditions of an arbitration agreement are: the agreement of the parties that the dispute be submitted to arbitration for consideration; and a defined legal relationship, which must be considered by the arbitral tribunal. Furthermore, the legislation of Georgia provides that an arbitration agreement must be concluded in writing. Similar to the UNCITRAL Model Law, the legislation recognizes exceptions when an arbitration agreement shall be considered concluded in writing, if its content is recorded in any form, regardless of the form in which the arbitration agreement or contract itself is concluded, and also if it is confirmed by the exchange of a statement of claim and a statement of defense, when one party asserts the existence of an arbitration agreement, and the other party does not deny it. However, the mentioned exception does not apply to natural persons and administrative bodies.

Confidentiality is one of the main practical advantages of arbitration. According to Part 4 of Article 32 of the Law on Arbitration, unless otherwise provided by law or the agreement of the parties, all arbitral proceedings must be closed. A submitted document, evidence, written or oral statement must not be publicly published or transferred and used in other judicial or administrative proceedings. According to Part 5 of the same Article, taking into account paragraph 4 of this Article, an arbitrator and any person participating in the arbitral proceedings are obliged to protect the confidentiality of the information received during the arbitral consideration.

Arbitration, as a rule, is a single-instance procedure, which means that an arbitration award is usually not subject to appeal. However, there is a limited possibility to raise a request for the annulment of the award only on procedural grounds; such grounds are very narrow and are prescribed in the law, as a rule, only formal violations can become the reason for the annulment of the award. Errors made in the assessment of substantive (material) issues of the case, however, as a rule, do not constitute grounds for the annulment of the award.