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Incorporation of Arbitration Clauses Revisited

Eight years ago in an article in Arbitration we noted the divergent views of a number of first-instance judges on the subject of the incorporation of arbitration clauses. The key issue was whether an arbitration clause could be incorporated into a contract by general words or whether this required clear express words only. The question of whether an arbitration agreement is incorporated into a contract is fundamental as it determines whether the parties are required to proceed to resolve their dispute by arbitration rather than court proceedings. The starting point for any analysis is the wording of the Arbitration Act 1996 s.6. This states: “6. Definition of arbitration agreement (1) In this Part an ‘arbitration agreement’ means an agreement to submit to arbitration present or future disputes (whether they are contractual or not). (2) The reference in an agreement to a written form of arbitration clause or to a document containing an arbitration clause constitutes an arbitration agreement if the reference is such as to make that clause part of the agreement.” The difficulty arises because of the final words in s.6(2): “if the reference is such as to make that clause part of the agreement”. There has been conflicting authority as to what is required to make “that clause part of the agreement”.

By |November 1st, 2010|Arbitration, Knowledge Hub|Comments Off on Incorporation of Arbitration Clauses Revisited

Incorporation of Arbitration Clauses

The Arbitration Act 1996 (AA 1996) s.6(1) defines arbitration agreements and section 6(2) deals with incorporation of arbitration agreements by reference: (1) In this Part an ‘‘arbitration agreement’’ means an agreement to submit to arbitration present or future disputes (whether they are contractual or not). (2) The reference in an agreement to a written form of arbitration clause or to a document containing an arbitration clause constitutes an arbitration agreement if the reference is such as to make that clause part of the agreement. It would appear, at first sight, that referring to a written agreement containing an arbitration clause is sufficient for there to be an ‘‘arbitration agreement’’. However, the law is never that simple. Case law suggests that, in most circumstances, a general reference to a contract will not incorporate the arbitration provisions within that contract. If a party wishes to incorporate the arbitration provisions then it will need to refer expressly to those provisions.

By |January 1st, 2002|Arbitration, Knowledge Hub|Comments Off on Incorporation of Arbitration Clauses
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