FORMALITIES AND ESSENTIAL REQUIREMENTS OF ARBITRATION AGREEMENTS

Abstract

This paper highlights the emergence of arbitration as the preferred dispute resolution mechanism in the context of the growing volume of commercial transactions conducted on a daily basis. The preference for arbitration in resolving commercial disputes is closely connected to the expedited dispensation of justice it offers. It is therefore important to consider the formalities and essential requirements for constituting arbitration and the legal implications thereof. Particular reference is made to the Arbitration and Mediation Act, which is an adaptation of the UNCITRAL arbitration framework. The study examines the nature, formality, and utility of arbitration clauses in constituting arbitration proceedings. It finds that where an arbitration clause exists in a commercial agreement, parties are duty-bound to first exhaust the arbitration route, failing which recourse to other remedies becomes premature. The study, however, notes that where a matter is not arbitrable, the arbitration agreement will fail. Consequently, contracting parties are required to carefully consider these legal requirements when incorporating arbitration clauses into their commercial transactions.