Read the given Statements and choose the correct option. A dispute arises between two companies regarding the enforcement of their arbitration clause. Ex- amine the following statements: Statement 1:An arbitration agreement must be in writing, and it can be contained in a contract, an exchange of letters, telex, telegrams, or elec- tronic communications.Statement 2:An arbitration agreement may be implied solely from the conduct of the parties, without any written record.
Explanation & Strategy
Click any section to expand · only one open at a time
Under the Arbitration Act, an arbitration clause in a commercial contract is valid and enforceable. Statement 1 (about arbitrability of the dispute) is true since commercial disputes are arbitrable. Statement 2 may reference a specific procedural point — verify against the Act.