An arbitration agreement means an agreement by the parties to submit to arbitration all or certain disputes which have arisen or which may arise between the parties in respect of a defined legal relationship, whether contractual or not. The basis of agreement under the Act is a written submission by the parties. The essential elements of an arbitration agreement are that there must be present and/or future differences in connection with some contemplated affair. There must be an intention by the parties to resolve/ settle the said disputes by a private tribunal and that the parties shall be bound by the decision of the said tribunal.
The following are the checkpoints which should be borne in mind while drafting an arbitration agreement:
[list]
[*]parties should be properly identified. [/*]
[*]there should be a clear reference to arbitration [/*]
[*]seat of arbitration should be determined [/*]
[*]there should be a choice of proper law of contract and the arbitration agreement to follow the said law of contract [/*]
[*]it should be checked whether there is choice of procedural law [/*]
[*]the procedure for appointment of the arbitral tribunal should be clearly specified in the arbitration agreement [/*]
[*]it should further be specified whether there is an appointing authority to appoint the arbitral tribunal [/*]
[*]attributes or qualification of the arbitral tribunal should also be specified. [/*]
[*]the number of members to be appointed to the arbitral tribunal should also be specified. [/*]
[*] the procedural and evidential rules if required should also be specified because in an arbitration proceeding the arbitator is neither bound by the provisions of Code Of Civil Procedure nor by the Evidence Act. [/*]
[*]The language of arbitration may also be specified [/*]
[*]it should be specified whether any confidentiality is required[/*][/list]The authority of the arbitral tribunal is quasi judicial in nature.
