All India Bar Examination (AIBE) 16-XVI Previous Year Question Papers with Answers

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54.

What is ad hoc arbitration ?

A: It is a proceeding administered by the parties themselves, with rules created solely, for that specific case
B: Parties make their own arrangement with respect to all aspects of the arbitration, including the laws and rules
C: The seal of arbitration, the language, and the scope and issues to be resolved by means of arbitration.
D: (a)(b)(c)

The answer is: D

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Explanation

The correct option is D: (a)(b)(c).

Ad hoc arbitration is a type of arbitration that is not administered by an arbitration institution, but by the parties themselves. They have the freedom and flexibility to decide on all aspects of the arbitration, such as the number and selection of arbitrators, the rules and procedures to follow, the applicable law, the language, the place, and the scope and issues to be resolved by arbitration. However, this also means that they have less support and guidance from an institution, and may face difficulties in enforcing the arbitral award. Ad hoc arbitration is often used when the parties want to save costs, time, and maintain confidentiality. Some examples of ad hoc arbitration are the UNCITRAL Arbitration Rules, the CPR Rules, and the Swiss Rules.