Skip to content

CS Professional · Arbitration, Mediation and Conciliation · Arbitration: Introduction, Agreements and its Institutions

Anita, an individual, agreed in writing with Bhasin Logistics to arbitrate disputes arising from a personal injury claim she had against it. She died, and her heirs want to continue the claim in arbitration. Bhasin contends that the claim itself is extinguished by her death under a law applying to such personal rights of action. How does section 40 bear on this?

Section 40(3) preserves any law under which a right of action dies with the person. The arbitration agreement is not discharged by death, but if another law extinguishes the claim itself on Anita's death, section 40 does not save it.

  1. ASection 40 overrides every law, so the claim survives in all cases
  2. BSection 40 does not affect any law by which a right of action is extinguished by a person's deathCorrect
  3. CSection 40 extinguishes the arbitration agreement along with the claim
  4. DSection 40 allows heirs to revive the claim only through a court

Explanation

Section 40(3) says nothing in the section affects the operation of any law by which a right of action is extinguished by death. So if such a law applies, the claim may fail even though the agreement itself is not discharged. The 'overrides every law' option contradicts this.

Did you get it right without looking?

One question tells you little. A timed set on Arbitration: Introduction, Agreements and its Institutions shows your real accuracy, how long you take and where you lose marks.

Practise Arbitration: Introduction, Agreements and its InstitutionsFree diagnostic mock

More Arbitration: Introduction, Agreements and its Institutions questions