Question

    Which of the following correctly describes the forms an

    arbitration agreement may take under Section 7(2)? 
    A Only as a standalone separate agreement between parties Correct Answer Incorrect Answer
    B Only as an arbitration clause embedded in the main contract Correct Answer Incorrect Answer
    C Either as an arbitration clause in a contract or as a separate agreement Correct Answer Incorrect Answer
    D Only in verbal form with witnesses present Correct Answer Incorrect Answer
    E Only as a document notarized by a public official Correct Answer Incorrect Answer

    Solution

    Section 7(2) provides: "An arbitration agreement may be in the form of an arbitration clause in a contract or in the form of a separate agreement." This flexibility allows parties to either: (i) include arbitration terms within the operative contract as a specific clause; or (ii) execute a standalone arbitration agreement. Section 7(5) further clarifies that "incorporation by reference" is valid—a contract can incorporate an arbitration clause from another document if the reference is clear and indicates the intention to make it part of the contract.

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