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Unit :- 1
Arbitration Agreement
Definition of Arbitration Agreement
The Arbitration agreement is the basis of any agreement. It is basically a clause
provided in the contract which is submitted to the arbitration on which the dispute is
been arised. It is also the agreement to which the dispute has been already arisen had
submitted the dispute to the arbitration.
Enforcement of Arbitration Agreement under Arbitration and Conciliation
Act, 1996
There are two types of enforcement the first is the right to waive the power to solve
the dispute or adjudicate with regard to the courts and secondly to provide jurisdiction
to the arbitrators that is in the hands of the private hands.
The Enforcement of the agreement can be done under the UNCITRAL Model Law and
the New York Conventions
The model law defines the Arbitration Agreement as follows:
“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”
With regard to the New York Convention the definition states that
““Each Contracting State shall recognize an agreement in writing under which the parties
undertake to submit to arbitration all or any differences which have arisen or which
may arise between them in respect of a defined legal relationship, whether contractua1
or not, concerning a subject matter capable of settlement by arbitration”
If the Applicable law is is based on the modern law then the parties will continue to
the arbitration clause as the agreement. in other case the applicable law will require
assent from both the parties.
Applicability of Law
The law which is applicable will be a major governing factor:
The first one is the law chosen by the parties: In some case there are laws which are
chosen by the parties and that govern the arbitration agreement
