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CS Professional · Arbitration, Mediation and Conciliation · Emerging Aspects: Fast Track and Virtual Arbitration

Two firms, Sundaram Logistics and Nilgiri Traders, never signed a contract containing an arbitration clause. Their managers exchanged emails in which Sundaram proposed arbitration of any dispute and Nilgiri replied accepting, and the emails remain stored. Is there an arbitration agreement in writing?

Yes. Under section 7(4)(b), an arbitration agreement is in writing if contained in an exchange of communication, including through electronic means, that provides a record of the agreement. Stored emails of proposal and acceptance therefore satisfy the writing requirement without a signed document.

  1. ANo, an arbitration agreement must always be on a document signed by both parties
  2. BNo, emails are not telecommunication under the Act
  3. CYes, an exchange of communication through electronic means providing a record of the agreement is in writingCorrect
  4. DYes, but only if the emails were 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. Option A ignores clause (b), which is an alternative to a signed document.

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