Arbitration refers to a third party to resolve the dispute or difference between not less than two parties for determination, after hearing each side,during a judicial manner, by an individual or persons aside from a court of contempt jurisdiction
According to Russel, the essence of arbitration is that some disputes are referred by the parties for settlement to a tribunal of their own choice instead of a court.
Under the English Law, arbitration means the settlement of disputes by the decision of one or more parties called an arbitrator.
Agricultural Science V. G.G Hosamath
In the case of Registrar, the contract provided that the decision of the Estate Officer shall be final and binding on all the parties, upon all the matters. It was held that the clause did not contemplate arbitration but only a reference.
Binding precedent are those judgments, decisions or judicial precedents which all the lower courts have to follow.