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Under section 28 of the Indian Contract Act, 1872, what is the status of a written agreement between…

Exception 2 to section 28 of the Indian Contract Act, 1872 saves written agreements to arbitrate questions that have already arisen between the parties. Exception 1 concerns…

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Under section 28 of the Indian Contract Act, 1872, what is the status of a written agreement between parties to refer an existing dispute between them to arbitration?

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Answer and explanation

Correct answer C

Exception 2 to section 28 of the Indian Contract Act, 1872 saves written agreements to arbitrate questions that have already arisen between the parties. Exception 1 concerns agreements to arbitrate future disputes. A written arbitration agreement for an existing dispute is therefore valid as against section 28. It remains subject to the Arbitration and Conciliation Act, 1996.

Option feedback

Option A

Exception 2 saves a written agreement to arbitrate a dispute that has already arisen.

Option B

Section 28 does not give either party an option to avoid a written agreement within Exception 2.

Option C

Exception 2 expressly saves written agreements referring existing disputes to arbitration.

Option D

Section 28 expressly saves the stated agreement.

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