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The Civil Courts and Dispute Resolution

Arbitration

  • 3 things to know
  • AS Unit 1

Overview

Arbitration agreement and scott v Avery clause.

What you need to know

Answer each one before you reveal it.

Your recallNot started
Key term

State the three general principles on which the Arbitration Act 1996 is founded.

Evaluation

Give three disadvantages of arbitration.

Numbers

Which statute 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 a process in which the parties agree to submit their dispute to a private third party, whose decision, called the award, is binding on them.

  2. 2

    Which statute governs arbitration in England and Wales?

    Model answer

    The Arbitration Act 1996 provides the framework for arbitration agreements, the conduct of the arbitration, and the enforcement and challenge of awards.

  3. 3

    State the three general principles on which the Arbitration Act 1996 is founded.

    Model answer

    The object is the fair resolution of disputes by an impartial tribunal without unnecessary delay or expense, the parties should be free to agree how their dispute is resolved, and the court should intervene only where the Act allows.

  4. 4

    What is an arbitration agreement?

    Model answer

    It is an agreement to submit present or future disputes to arbitration, and it must be in writing for the Arbitration Act 1996 to apply to it.

  5. 5

    What is a Scott v Avery clause?

    Model answer

    It is a clause making the making of an arbitration award a condition precedent to any right of action, so a party cannot bring court proceedings until the arbitration has been completed.

  6. 6

    What happens if a party sues in breach of an arbitration agreement?

    Model answer

    The other party may apply for a stay of the court proceedings, and the court must grant it unless the arbitration agreement is null and void, inoperative or incapable of being performed.

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