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

Gupta and Sons, a partnership-style trading business run by Mr. Gupta alone, signed an arbitration agreement with Nair Ltd. through an exchange of emails that recorded the agreement. Mr. Gupta died before any dispute arose. Nair Ltd. later wants to invoke arbitration against his legal representative. Which statement is correct?

The agreement is valid and survives. Under section 7(4)(b), an exchange of communications through electronic means that records the agreement is in writing, and under section 40(1) the agreement is not discharged by Mr. Gupta's death, so Nair Ltd. can enforce it against his legal representative.

  1. AThe email exchange is not writing, so no agreement ever existed
  2. BThe agreement is in writing as an exchange of communication through electronic means, and it is not discharged by deathCorrect
  3. CThe agreement is valid but discharged as regards Mr. Gupta's death
  4. DThe agreement requires a document signed by the parties to survive death

Explanation

Section 7(4)(b) treats an exchange of communication through electronic means providing a record of the agreement as writing. Section 40(1) then says death does not discharge the agreement, which is enforceable against the legal representative. A signed document is only one of the permitted forms.

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