The form of alternative dispute resolution (ADR) technique for the resolution of disputes outside the courts. The parties to a dispute refer it to arbitration by one or more persons and agree to be bound by the arbitration decision. A third party reviews the evidence in the case and imposes a decision that can be legally binding on both sides and enforceable in the courts.

An example of an arbitration would be when two people who are divorcing cannot agree on terms and allow a third party to come in to help them negotiate.

Example in Environmental policy:

Done during the discussion about Stuttgart 21 (construction of a new central station), but did not lead to legal binding agreements.