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

Arun Traders and Bharat Steels negotiated by email. Arun's email proposed, 'Disputes under this deal to go to arbitration in Mumbai.' Bharat replied by email, 'Agreed.' No paper document was signed. Is there an arbitration agreement in writing under Section 7?

Yes. Under Section 7(4)(b), an exchange of communications including electronic means that provides a record of the agreement is treated as writing, so the proposal and acceptance by email form a valid written arbitration agreement even without a signed document.

  1. ANo, because only a document signed by the parties is writing
  2. BNo, because emails are not telecommunication under the Act
  3. CYes, because an exchange of communication through electronic means providing a record of the agreement is writingCorrect
  4. DYes, but only if the emails are later filed before a court

Explanation

Section 7(4)(b) treats an agreement as in writing if contained in an exchange of letters, telex, telegrams or other means of telecommunication, including communication through electronic means, which provide a record of the agreement. The email exchange qualifies. Signature on a single document is only one of the permitted modes.

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