Question

Read the given Statements and choose the correct option.
Statement 1: An arbitration agreement must be in writing and may exist in contracts, letters, telex, telegrams, or electronic communications.
Statement 2: An arbitration agreement may be implied solely from conduct without any written record.

• A. Only Statement 1 is true
• B. Only Statement 2 is true
• C. Both Statements 1 and 2 are true
• D. Neither Statement 1 nor 2 is true

Hint:

Arbitration clause must be in writing; conduct alone cannot imply arbitration.

Answer 1

The Correct Option is A

Step 1: Verify Statement 1.
Section 7 of the Arbitration and Conciliation Act requires arbitration agreements to be in writing, including electronic communications. This is correct.
Step 2: Verify Statement 2.
An arbitration agreement cannot arise purely from conduct without written evidence; hence Statement 2 is false.
Step 3: Conclusion.
Only Statement 1 is true.