What is an Arbitration Agreement? What is the form of making an arbitration agreement?
Meaning of Arbitration agreement – Chapter II – section 7 of the Arbitration and Conciliation Act, 1996 –
- In this Part, ‘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.
The form of an Arbitration Agreement –
- An arbitration agreement may be in the form of an arbitration clause in a contract or in the form of a separate agreement.
- An arbitration agreement shall be in writing.
- An arbitration agreement is in writing if it is contained in-
- a document signed by the parties;
- an exchange of letters, telex, telegrams or other means of telecommunication which provide a record of the agreement; or
- an exchange of statements of claim and defense in which the existence of the agreement is alleged by one party and not denied by the other.
- The reference in a contract to a document containing an arbitration clause constitutes an arbitration agreement if the contract is in writing and the reference is such as to make that arbitration clause part of the contract.