All India Bar Examination (AIBE) 15-XV Previous Year Question Papers with Answers

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5.

According to Section 7(4) of the Arbitration and Conciliation Act, 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 defence in which the existence of the agreement is alleged by one party and not denied by the other.
D: All of the above

The answer is: D

Explanation

The correct option is D: All of the above.

According to Section 7 (4) of the Arbitration and Conciliation Act, 1996, an arbitration agreement is in writing if it is contained in any of the following forms:

- A document signed by the parties: This means that the parties have explicitly agreed to arbitrate their disputes by signing a written contract or a separate arbitration clause.

- An exchange of letters, telex, telegrams or other means of telecommunication which provide a record of the agreement: This means that the parties have communicated their consent to arbitrate through written correspondence or electronic means that can be verified and stored.

- 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: This means that the parties have implicitly agreed to arbitrate by raising or accepting the arbitration issue in their pleadings before a court or tribunal.

Therefore, an arbitration agreement can be in writing even if it is not contained in a single document, as long as there is some evidence of the parties intention to arbitrate.