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    Question

    Under Section 7 of the Arbitration and Conciliation Act,

    1996, the scope of an arbitration agreement:
    A Covers only contractual disputes Correct Answer Incorrect Answer
    B Covers disputes arising out of a defined legal relationship, whether contractual or not Correct Answer Incorrect Answer
    C Covers all disputes between the parties Correct Answer Incorrect Answer
    D Can be enforced only by the claimant Correct Answer Incorrect Answer
    E Requires dispute resolution through courts first Correct Answer Incorrect Answer

    Solution

    Section 18 provides that the tribunal can determine disputes submitted to arbitration, which may arise "out of or in relation to" a defined legal relationship. This can include contractual disputes, quasi-contractual disputes, and other legal relationships. The ambit of the tribunal's power is determined by the arbitration agreement. Section 16 requires the tribunal to decide whether it has jurisdiction. [Citation: Sections 16-18, Arbitration and Conciliation Act, 1996]

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