An "arbitration agreement" is a condition precedent for a valid arbitration under the provision of the Arbitration and Conciliation Act,1996. With Reference to a Substantive agreement between the parites :

All India Bar Examination (AIBE) 2-II Previous Year Question Papers with Answers

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An "arbitration agreement" is a condition precedent for a valid arbitration under the provision of the Arbitration and Conciliation Act,1996. With Reference to a Substantive agreement between the parites :

A: The arbitration agreement has to be a separate agreement referencing the substantive agreement

B: The arbitration agreement can be a clause of the substantive agreement

C: The arbitration agreement has to be separately agreed upon by telex or e-mail or in writing under section 7 of the arbitation and conciliation act,1996

D: The arbitration agreement has to be a separate agreement registered with a High Court

E: The arbitration agreement has to be a separate agreement notarized by a notary

The answer is: B

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Explanation

B: The arbitration agreement can be a clause of the substantive agreement.

Explanation:

In accordance with the provisions of the Arbitration and Conciliation Act, 1996, an arbitration agreement can be a clause within the substantive agreement. It doesn't necessarily have to be a separate agreement. The Act allows parties to include arbitration clauses within their contracts, making it a part of the overall agreement between them. This is a common practice, and it simplifies the process by incorporating the arbitration mechanism directly into the main agreement. Parties are free to structure their contracts in this manner, and it is legally valid under the Act.

Option A is not entirely accurate because, while parties can have a separate arbitration agreement, it is not a requirement for validity under the Act.

Option C is not entirely accurate either. While Section 7 of the Act does specify that the arbitration agreement should be in writing, it does not mandate separate agreements for the arbitration. The arbitration clause within the substantive agreement can satisfy this requirement.

Option D is incorrect because there is no requirement in the Act for the arbitration agreement to be registered with a High Court.

Option E is also incorrect because notarization by a notary is not typically required for arbitration agreements under the Act.