Arbitration is a method of dispute resolution in which parties voluntarily submit their disputes to a third impartial person, an arbitrator. It is an alternative to the judicial process, developed due to shortcomings in state courts, such as slowness, high costs, and uncertainty. An analysis of the duration shows that arbitration proceedings are typically shorter than court proceedings, but there is variability depending on the institution and jurisdiction. An arbitration agreement forms the basis for conducting arbitration proceedings. The most common issue that arises in the interpretation of international arbitration agreements concerns the "scope" of the agreement, that is, which categories of disputes the parties agree to arbitrate. In practice, arbitration agreements are interpreted to fulfill the parties' intentions, and general principles of contract interpretation are applied to determine the actual and common intent of the parties. It's important to emphasize that the interpretation of arbitration agreements usually relies on the parties' intentions and their actual will, taking into account the specifics of each agreement. Furthermore, the choice of applicable law for interpreting the arbitration agreement also plays a significant role, and the general rules for contract interpretation are often applied if the parties have not agreed otherwise. In international arbitration agreements, parties have the freedom to choose which law will govern their agreement, including the law that will apply to the interpretation of the agreement. In Croatian law, certain laws and regulations govern the issue of applicable law in arbitration agreements, but, in essence, the parties' choice regarding the applicable law for interpreting the agreement is respected.