The Arbitration Agreement

Abstract Section 6(1) of the Arbitration Act 1996 defines an arbitration agreement as ‘an 20.01 agreement to submit to arbitration present or future disputes (whether they are contractual or not)’. For Part I of the Arbitration Act 1996 to apply, the arbitration agreement must be made in writing. The dispute need not be confined to contractual matters3 and, depending on the wording of the arbitration agreement, may include claims in tort. However the dispute must be capable of being arbitrated. There is no prescribed manner for the drafting of an arbitration agreement. The parties may specify a procedure for the arbitration in their agreement or simply refer to an administered arbitration scheme. The arbitration agreement may be contained in an underlying contract between the parties from which the dispute arises, or it may be contained in a separate contract. Alternatively, the parties may incorporate a set of terms and conditions that contain an arbitration clause into a contract. This will constitute a valid arbitration agreement if the effect is to make the arbitration clause part of the contract.