Q5. Discuss arbitration agreement along with essential ingredients of a valid arbitration.

The term arbitration literally means a settlement for determination of dispute outside the court by the private individual party to the dispute without the approaching the court of law may be referred their the matter to a person whom they trust on in whom they have a good faith to suggestion and amicable solution such persons who acts as a mediator between the disputant to settle the matter dispute is called arbitrator.

A Written agreement to be submitted a present or future dispute to be arbitration weather and arbitrator is named therein or not called arbitration agreement the decision which is binding on the party to the dispute is called are award or arbitration award.


the parties to dispute without approaching the court of law may be entered into on the agreement to refer their matter is proved to be settled by a third person called arbitrator such agreement is called arbitration agreement in simple word it is a written agreement entered into between the party to a dispute to repair the matter be settled by third person.

DEFINITION according to section 2 clause 1 of the arbitration and conciliation act 1996 arbitration agreement means an agreement referred to section 7 which contains the ingredient of the arbitration agreement.


1. arbitration agreement means agreement by the party to submit to arbitration all or certain dispute which have arisen or which may arise between the introspect of a divine legal relationship whether contractual or not.

2. an arbitration agreement may be in form of an arbitration clause in contract law in the form of the separate agreement

3. an arbitration agreement shall be in writing

4. arbitration agreement is in a writing it is a contained in

  • · a document signed by the parties

  • · an exchange of letter

  • · an exchange of the statement of claim and Defence

5. Reference in a contract to a document containing an arbitration clause constitution and arbitration agreement in the contract is in writing and the reference is such as to make that arbitration clause part of the contract.Section 7 clause 3 and 4 of the act state that the arbitration agreement must be writing and signed by the party.

Gopal Chand v/s Madan Lal AIR 1992 Aurangabad LR 139

Fact of this cases In this case was held that oral submission cannot be the basis of the suit. the law required that arbitration agreement must not being uncertain and it should be capable of being ascertained certainly as to the one dispute two parties and three identity of the arbitral Tribunal and it compensation in the arbitration agreement

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