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The Civil Courts and Civil Process

Arbitration

  • 3 things to know
  • Component 1

Overview

Arbitration agreement, scott v Avery clause and difference between arbitration inside and outside the court system.

What you need to know

Answer each one before you reveal it.

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Numbers

What reform of arbitration law received Royal Assent in February 2025?

Key term

Define arbitration.

Numbers

Which Act governs arbitration in England and Wales?

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    Define arbitration.

    Model answer

    Arbitration is the resolution of a dispute by a private arbitrator whose decision binds the parties. Arbitration takes place outside the courts but is enforceable through them.

  2. 2

    Which Act governs arbitration in England and Wales?

    Model answer

    The Arbitration Act 1996 governs arbitration in England and Wales. The Act sets out the arbitrator's duties, the parties' freedom to agree procedure and the routes of challenge.

  3. 3

    What is an arbitration agreement?

    Model answer

    An arbitration agreement is a written agreement to submit present or future disputes to arbitration. Many commercial contracts contain a clause covering disputes that have not yet arisen.

  4. 4

    What is a Scott v Avery clause?

    Model answer

    A Scott v Avery clause makes an arbitration award a precondition of any court action. The clause prevents a party going straight to court in breach of the agreement.

  5. 5

    What happens if a party sues in court despite an arbitration agreement?

    Model answer

    The other party can apply under section 9 of the Arbitration Act 1996 for a stay of proceedings. The court must grant a stay unless the arbitration agreement is void or inoperative.

  6. 6

    Who chooses the arbitrator?

    Model answer

    The parties choose the arbitrator or agree a method of appointment such as nomination by a professional body. The court can appoint an arbitrator where the parties cannot agree.

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