Business owners and managers familiar with the litigation system understand that high litigation costs and long delays make it difficult and expensive to resolve commercial disputes in court. They also understand that most civil cases brought to court are settled before trial. They are resolved after spending a lot of time and money in the complex pre-trial phase, but just in time to avoid the risk of a trial. Commercial mediation and arbitration offer superior solutions that help resolve commercial disputes. Mediation puts the parties immediately in control of the situation and helps them achieve the desired results without devoting vast resources to litigation procedures (Berg, Permanent Court of Arbitration. International Bureau, International Council for Commercial Arbitration, 2005). Litigation is the process of bringing, maintaining and defending a lawsuit brought by the plaintiff against a company or organization or person considered to be a defendant. Litigation is thorny, lengthy, costly and involves a risky process that must comply with a complex set of rules. The risks that businesses and other organizations face when handling litigation are manifold. First, they face a probability of winning or losing. Indeed, it is not certain that one party must win. Second, the amount of money to be won or lost is not defined. Businesses, organizations or individuals run the risk of receiving less money than they expected. In fact, they might receive little money compared to what they sent through the legal process. Attorney fees and other litigation costs make the process considerably expensive. Another risk involves the loss of productive time of managers and other staff because ...... middle of paper ...... mainly flexibility comes from the innovation and ingenuity of the parties in developing their arbitration agreement. Since arbitration is a type of contract law, the parties can develop the terms, agreements and parameters that they can use to manage disputes arising therefrom, during arbitration. Such flexibility is not possible in the context of litigation (Antonio Buti, 2001). In conclusion, traditional litigation systems and arbitrary or alternative dispute resolution techniques offer ways to resolve commercial disputes. However, litigation systems are expensive, time-consuming and inflexible and carry many risks, including lack of confidentiality. On the other hand, arbitration is less time-consuming, inexpensive and flexible because it allows the parties to draft their own arbitration agreements. Arbitrary dispute resolution (ADR) techniques are therefore preferable for businesses..