What is the best for dispute settlement in Contract? Arbitration or Court?

The answer depends on the size of the contract and the parties if they are individuals or companies.

Usually individuals and for millions of reasons do not go to arbitration to settle disputes. One of the main reasons is that it is very expensive. So if we are talking about a contract of10000 dollars, they will gain nothing from arbitration.

On the contrary large international corporations do not prefer to go to normal courts instead they prefer arbitration in international chambers of commerce like Paris or London. Main reason is that they not have time for long term court hearings. Moreover, they are settling contracts worth millions of dollars.

d'accord avec mouawad el-hadjal ,la pratique de l'arbitrage n'est pas très appreciée dans les contrats publics de la plus part des pays mais elle est en train de progresser en partie grâce à l'insistance des multinationales et aussi grâce aux organismes professionnels internationaux d'arbitrage 

Relative to disputes on contracts, the better option is actually negotiation (amicable settlement) between parties involved prior to arbitration because participation by parties are maximized and they have greater control of the situation.  However, if negotiation failed, arbitration is better option rather than going into courts because the latter is more costly.  Arbitration will only be costly if the venue is abroad. Therefore, it is desirable to consider the following:  1) value of contract subject of dispute;2) parties; and3) cost of litigation.  If the benefits or money being claimed is more than the cost of suit, court action is proper.  If cost of recovery is more than the amount being claimed, it is better to settle the issue amicably  even if cost of suit is to be borne by the defeated party.

Still amicable settlement is the best.  Arbitration and court litigation are only other options for recovery if amicable settlement fails.