Section 2(1)(b) Arbitration Act 1996 defines 'ARBITRATION AGREEMENT' as:
Aonly oral (cf. Arbitration and Conciliation Act 1996, Section 7) (cf. Arbitration and Conciliation Act 1996, Section 7) (cf. Arbitration and Conciliation Act 1996, Section 7)
Bonly verbal (cf. Arbitration and Conciliation Act 1996, Section 7) (cf. Arbitration and Conciliation Act 1996, Section 7) (cf. Arbitration and Conciliation Act 1996, Section 7)
CSection 7 — agreement by parties to SUBMIT to arbitration ALL OR CERTAIN DISPUTES which have arisen or may arise in respect of a defined legal relationship; whether contractual or not; MUST BE IN WRITING
Donly implicit (cf. Arbitration and Conciliation Act 1996, Section 7) (cf. Arbitration and Conciliation Act 1996, Section 7) (cf. Arbitration and Conciliation Act 1996, Section 7)
Answer & Solution
Correct answer: C. Section 7 — agreement by parties to SUBMIT to arbitration ALL OR CERTAIN DISPUTES which have arisen or may arise in respect of a defined legal relationship; whether contractual or not; MUST BE IN WRITING
1. Section 7 Arbitration and Conciliation Act 1996 defines 'ARBITRATION AGREEMENT':
2. (1) 'Arbitration agreement' means an agreement by the parties to SUBMIT to arbitration ALL OR CERTAIN DISPUTES which have arisen or which may arise between them in respect of a defined legal relationship, whether contractual or not.
3. (2) An arbitration agreement may be in the form of an ARBITRATION CLAUSE in a contract or in the form of a SEPARATE AGREEMENT.
4. (3) An arbitration agreement SHALL BE IN WRITING.
5. (4) An arbitration agreement is IN WRITING if it is contained in:
6. (a) a document signed by the parties;
7. (b) an exchange of letters, telex, telegrams or other means of telecommunication;
8. (c) 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;
9. (d) electronic communication if accessible.
10. (5) Reference in a contract to a document containing arbitration clause constitutes arbitration agreement if the contract is in writing and the reference makes it part of the contract.
11. Hence option B is correct.
_Source: Arbitration and Conciliation Act 1996 (Bare Act) + Mediation Act 2023 — Arbitration and Conciliation Act 1996, Section 7_
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