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    Question

    An oral arbitration

    agreement: 
    A May be recognised at the discretions of the arbitrators Correct Answer Incorrect Answer
    B Is not recognised as an arbitration agreement. Correct Answer Incorrect Answer
    C May be recognised depending upon the facts and circumstances of case to case. Correct Answer Incorrect Answer
    D May be recognised at the discretion of the parties. Correct Answer Incorrect Answer
    E Both (c) and (d) Correct Answer Incorrect Answer

    Solution

    • The Arbitration and Conciliation Act, 1996 requires arbitration agreements to be in writing under Section 7, which includes agreements contained in electronic form or exchange of written statements where existence of the agreement is alleged and not disputed. • However, in practice, oral arbitration agreements may be recognized depending on the facts and circumstances of each case, and at the discretion of the parties involved. • Courts generally give more evidentiary weight to written arbitration agreements but have recognized oral agreements where mutual consent to arbitrate is clearly proved. • Judicial precedents confirm that while oral agreements hold less weight than written ones, they are not automatically invalid, especially when parties act upon such agreements. • Importantly, an oral arbitration agreement cannot override or supersede a prior written agreement, but in absence of a written agreement, oral consent to arbitrate may be enforceable.

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