In an agreement between the parties, the English Courts were given jurisdiction over disputes but either party had a right to elect that the dispute be referred to arbitration. It was argued that there was no existing binding agreement to arbitrate but at best an agreement to agree, and that the 1950 Act did not apply.
Held: The court rejected the submission.
Bingham J said: ‘I see force in the contention that until an election is made there is no agreement to arbitrate, but once an election is duly made (and the option exercised) I share the opinion of the High court of Delhi in the Bharat case, that a binding arbitration agreement comes into existence.’
Judges:
Bingham J
Citations:
[1983] 1 Lloyds Law Rep 424
Statutes:
Jurisdiction:
England and Wales
Cited by:
Approved – The Stena Pacifica 1990
A clause in an agreement gave both parties an option or election to refer disputes to arbitration.
Held: The agreement was valid and allowed an arbitration . .
Cited – NB Three Shipping Ltd. v Harebell Shipping Ltd ComC 13-Oct-2004
Under charterparty agreements, certain disputes were to be referred to arbitration. The claimant sought to pursue a dispute before the court.
Held: The lack of mutuality on the arbitration clause did not prevent its validity. The party had the . .
Lists of cited by and citing cases may be incomplete.
Arbitration
Updated: 09 September 2022; Ref: scu.216400