• Chapter 2 Chapter 2 — Arbitration Agreement

    • 13. Arbitration agreement

      (1) An arbitration agreement is an agreement by the parties to submit to arbitration all or certain disputes which have arisen or which may arise between them in respect of a defined legal relationship, whether contractual or not. An arbitration agreement may be in the form of an arbitration clause in a contract or in the form of a separate agreement.
      (2) An arbitration agreement shall be in writing. It can result from an exchange of written communications or be contained in a document to which reference is made in the main agreement.
      (3) For the purposes of subsection (2), the requirement that an arbitration agreement be in writing is met by an electronic communication if the information contained therein is accessible so as to be useable for subsequent reference; an electronic communication is any communication that the parties make by means of data messages; a data message is information generated, sent, received or stored by electronic, magnetic, optical or similar means, including, but not limited to, electronic data interchange (EDI), electronic mail, telegram, telex or telecopy.
      (4) Furthermore, an arbitration agreement is in writing if it is contained in an exchange of statements of claim and defence in which the existence of an arbitration agreement is alleged by one party and not denied by the other.
      (5) The reference in a contract to any document containing an arbitration clause constitutes an arbitration agreement in writing, provided that the reference is such as to make that clause part of the contract.

    • 14. Separability of arbitration agreement

      Unless otherwise agreed by the parties, an arbitration agreement which forms or was intended to form part of another agreement (whether or not in writing) shall not be regarded as invalid, non-existent or ineffective because that other agreement is invalid, or did not come into existence or has become ineffective, and the arbitration agreement shall for that purpose be treated as a distinct agreement.

    • 15. Stay of legal proceedings

      (1) A party to an arbitration agreement against whom legal proceedings in the Court are brought (whether by way of claim or counterclaim) in respect of a matter which is the subject of the arbitration agreement may (upon notice to the other parties to the proceedings) apply to the Court to stay the proceedings so far as they concern that matter.
      (2) On an application being made under subsection (1) the Court shall grant a stay unless satisfied that the arbitration agreement is null and void, inoperative, or incapable of being performed.
      (3) An application may:
      (a) be made notwithstanding that the matter is to be referred to arbitration only after the exhaustion of other dispute resolution procedures.
      (b) not be made by a person before taking the appropriate procedural step (if any) to acknowledge the legal proceedings against him or after he has taken any step in those proceedings to answer the substantive claim.
      (4) Where an application referred to in subsection (1) has been brought, arbitral proceedings may nevertheless be commenced or continued, and an award may be made, while the issue is pending before the Court.
      (5) If the Court refuses to stay the legal proceedings, any provision that the award is a condition precedent to the bringing of legal proceedings in respect of any matter is of no effect in relation to those proceedings.

    • 16. Death of a party

      (1) Unless otherwise agreed by the parties, an arbitration agreement is not discharged by the death of a party and may be enforced by or against the personal representatives of that party.
      (2) Subsection (1) does not affect the operation of any enactment or rule of law by virtue of which a substantive right or obligation is extinguished by death.