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Under Section 7 of the Act, an **arbitration agreement** is in writing if it is contained in any of the following. Which is NOT one of the recognised forms?
A{'text': 'A document signed by the parties to the agreement and containing the arbitration clause or constituting the arbitration agreement of the parties to the dispute', 'label': 'A'}
B{'text': 'An exchange of letters, telex, telegrams or other means of telecommunication which provide a record of the agreement', 'label': 'B'}
C{'text': 'An exchange of statements of claim and defence in which the existence of the agreement is alleged by one party and not denied by the other', 'label': 'C'}
D{'text': 'A purely oral agreement reached at a meeting between the parties without any subsequent written record of any kind made by either party to the agreement', 'label': 'D'}
Answer & Solution
Correct answer: D. {'text': 'A purely oral agreement reached at a meeting between the parties without any subsequent written record of any kind made by either party to the agreement', 'label': 'D'}
1. Section 7 of the Act requires the arbitration agreement to be in **writing**.
2. The three accepted forms are: (a) a document signed by the parties; (b) an exchange of letters, telex, telegrams or other means of telecommunication providing a record; (c) an exchange of statements of claim and defence in which existence of the agreement is alleged and not denied.
3. **Purely oral arbitration agreements are NOT recognised**.
4. The reference in a contract to a document containing an arbitration clause also constitutes an arbitration agreement if the contract is in writing.
_Source: ICSI CS Executive Paper 1 — Jurisprudence, Interpretation & General Laws, Lesson 13 (Arbitration and Conciliation Act, 1996), pp. 297-303._
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