Which of the following correctly describes the forms an arbitration agreement may take under Section 7(2)? 

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.