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    Question

    According to Section 7(5), when does a reference to a

    document containing an arbitration clause constitute a valid arbitration agreement? 
    A If the reference is made anywhere in any communication between parties Correct Answer Incorrect Answer
    B If the contract is in writing and the reference is such as to make that arbitration clause part of the contract Correct Answer Incorrect Answer
    C If a party verbally refers to an external document during negotiation Correct Answer Incorrect Answer
    D If the document is referenced in emails but not in the final contract Correct Answer Incorrect Answer
    E If the arbitration clause is referenced in a document that is itself unsigned Correct Answer Incorrect Answer

    Solution

    Section 7(5) provides: "The reference in a contract to a document containing an arbitration clause constitutes an arbitration agreement if the contract is in writing and the reference is such as to make that arbitration clause part of the contract." This requires: (i) the main contract must be in writing; (ii) the reference must be clear and unambiguous; and (iii) the parties' intention to incorporate must be evident. A vague reference (e.g., "subject to standard terms") is insufficient; the reference must specifically identify the external document and the arbitration clause. In Elite Engineering v. Techtrans, the Supreme Court held that general references without clarity are not tenable.

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