2. Introduction:
"It is a good and fair settlement, when neither party likes the outcome, but
agree to it’.
•There is a trend world over, in particular among companies and corporate not
to drag disputes into long drawn courtroom battles.There comes the
significance of arbitration, mediation, conciliation and such ADR mechanism.
Hence is the added advantages of saving in time as well as the cost of
proceedings. Moreover the parties settle the matter in a win-win spirit.
3. Defination:
Arbitration agreement is defined as an agreement to submit present or future dispute
to arbitration.
This generic concept comprises two basic type.
a. A clause in a contract, by which the parties to a contract undertake to submit to
arbitration the disputes that may arise in relation to that contract (arbitration clause)
b. An agreement by which the parties to a dispute that has already arisen submit the
dispute to arbitration (submission agreement).
4. According to Section 7 of Arbitration Conciliation Act, 1996
the features of Arbitration Agreement are:
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) A document signed by the parties.
b) An exchange of letters, telex, telegrams or other means of telecommunication which
provide a record of the agreement.
c) 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.
5. REQUIREMENTS FORTHE ARBITRATION AGREEMENT :
i. It must arise out of mutual consent.
ii. The parties must have legal capacity.
iii. The agreement must be made in writing.
iv. It must arise out of a defined legal relationship.
v. The subject matter must be arbitral.
6. KINDS OF ARBITRATIONAGREEMANT :
ARBITRATIONCLAUSE:
i. Future disputes.
ii. Short and broad.
iii. Provided clause in the main contract.
SUBMISSION AGREEMENT :
i. DisputesWhich have already arisen.
ii. Detailed and specific setting out the exact
dispute.
iii. After dispute arisen.
7. TERMINATION OF ARBITRATION AGREEMANT :
1) Termination of arbitration agreement by mutual consent
2) Another grounds for termination of the arbitration agreement:
A. Although the death of one of the parties is not generally considered a ground for
termination of the agreement, it is expressly provided for under some laws.
B. The death of the arbitrators is not normally a ground for terminating the
arbitration agreement, either. Some laws set forth otherwise when the parties
regard the intervention of a specific arbitrator as a condition for the arbitration.
8. CONCLUSION :
It is said that when two great powers disagree about anything it doesn't
matter what they must find a way to settle it somehow by arbitration or by
negotiation, not by war or threat of war.
