An arbitration award is the conclusion or judgment from a process of legal arbitration. This is a form of alternative dispute resolution wherein a dispute between parties is settled by a third party that is neither judge nor jury but acts in the same capacity. An arbitrator or arbitral tribunal is the third party which resolves a disputed by handing out a judgment or decision, referred to as an arbitration award, as much as a judge or jury does. However, arbitration is not the same as a court trial as much as it acts as a scaled version of one.
An arbitration contract clause determines whether or not the decision reached by the arbitrator will be binding to both parties. If the disputing parties agree to a binding arbitration, the judgment passed during the legal arbitration is final and the case can no longer be brought to a court of law.
Given the terms of the agreement reached by both parties, the arbitration renders a decision usually after 30 days. Upon the fulfillment of the terms agreed upon in a legal arbitration, an arbitration award is handed out, which can be financial or non-financial. Once an arbitration award is given, it cannot be appealed or taken back. It is a final and conclusive judgment applied to the case. However, if an arbitration award was obtained by fraudulent means, prejudice, error, or beyond the jurisdiction of the arbitration, it can be changed. However, the aforementioned are the only exceptions to the finality of an arbitration award.