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”.