An arbitration agreement produces its effect only where it is valid and the dispute itself is arbitrable. The Law of Georgia on Arbitration regulates both questions precisely: Article 1 defines which disputes an arbitration tribunal may hear, Article 8 — the form of the agreement and the conditions of its operation, and Article 9 — the court's obligation to refuse a claim on the merits. These three provisions are examined in detail below.
The Boundaries of Arbitrability — Which Disputes Go to Arbitration
Under Article 1, an arbitration tribunal is competent to hear a property dispute of a private-law nature, based on the equality of persons, which the parties are able to settle between themselves. The tribunal is also competent for a dispute related to a public-private partnership contract provided for by the Law of Georgia on Public and Private Partnership. Everything that does not fall within this list remains within the jurisdiction of the courts: an agreement cannot transfer to arbitration a dispute which the law does not assign to the competence of arbitration.