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

Ishaan Realty filed a statement of claim before an arbitrator alleging that the parties had agreed to arbitrate disputes under an oral understanding. Sunrise Builders, in its statement of defence, did not deny the existence of the arbitration agreement. Which statement is correct under Section 7?

The agreement is treated as in writing. Section 7(4)(c) covers an exchange of statements of claim and defence where one party alleges the arbitration agreement and the other does not deny it, so Sunrise Builders' silence satisfies the writing requirement.

  1. AThe agreement is not in writing since an oral agreement cannot become written
  2. BThe agreement is in writing because of the exchange of statements of claim and defence where one party alleges it and the other does not deny itCorrect
  3. CThe agreement is in writing only if Sunrise Builders signs the statement of defence
  4. DThe agreement is in writing only if the arbitrator records it in an order

Explanation

Section 7(4)(c) provides that an agreement is in writing if contained in an exchange of statements of claim and defence in which one party alleges the agreement and the other does not deny it. Sunrise did not deny, so the requirement is met. No signature or order is required by that clause.

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