Question

According to Section 7(1) of the Arbitration and Conciliation Act, 1996, what is the essential characteristic of an "arbitration agreement"?

Q: Answer-According to Section 7(1) of the Arbitration and Conciliation Act, 1996, what is the essential chara...

Section 71 provides In this Part, arbitration agreement means 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. This definition is broader than the 1940 Act and encompasses both contractual and non-contractual disputes. The requirement of a defined legal relationship ensures clarity about the scope of arbitration, preventing abuse. The flexibility to cover all or certain disputes allows parties to customize arbitrations scope.

A An agreement that must always be in writing and notarized

B An agreement by parties to submit to arbitration all or certain disputes which have arisen or may arise between them in respect of a defined legal relationship, whether contractual or not

C An agreement that automatically creates a binding decision without any dispute resolution process

D An agreement that allows courts to override arbitration at any time

E An agreement that can only relate to contractual disputes and not other relationships

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