Management 202: Commercial Arbitration

Business Law     



Arbitration means a written agreement to submit present or future disputes to arbitration regardless of whether or not an arbitrator is named in the agreement .The person appointed to determine a dispute is called an Arbitrator. The proceedings before an Arbitrator is called an Arbitration and the decision of an Arbitrator is called an Award


Where the partners agree to submit their disputes to arbitration before commencing any legal proceedings in court, it is the duty of the court to ensure that the arbitration agreement is respected. In this case, if a party to the arbitration agreement commences legal proceedings in court on any matter covered by the arbitration agreement, then the other party may apply to the court for an order to stay (Stop) the proceedings and require the dispute to be settled by arbitration. However before a court can grant a stay order, the following conditions must be satisfied:

  • There must have been a valid written arbitration agreement in place between the parties before the date of the commencement of the legal proceedings
  • The dispute in question before the court must be one which is covered by the Arbitration agreement.
  • The application to stay the proceedings must have been made by a person who is a party to the arbitration agreement or has legal representatives
  • The person making the application must not have taken any steps to participate in the legal proceedings and the application must have been made at the earliest stage of the legal proceedings
  • The application to stay the proceedings must be made to the judicial authority or court before which the case is pending.
  • The applicant must satisfy that court that he is ready and willing to do all things necessary for the proper conduct of the arbitration.
  • The court must ensure that there is no other sufficient reason why the dispute should not be referred for Arbitration.

It is important to note that even if all the above conditions are met or fulfilled the court still has powers to decide on Whether or not to grant a stay order.



  • An Arbitration agreement must have be made in Writing and even though the signatures of the parties to the agreement is not necessary, it must be shown that they have agreed to settle their disputes by Arbitration.
  • Being a contract, an Arbitration agreement must contain all essential elements required of an ordinary contract such as Offer and Acceptance, Capacity to Contract, Lawful Objectives, Free consent and so on.
  • The agreement must be to refer present/future disputes between parties to Arbitration.
  • In case a contract containing an arbitration agreement is terminated for any reason, the Arbitration agreement remains valid and binding between the parties.




5 thoughts on “Management 202: Commercial Arbitration

  1. I discovered your Create a website or blog at page and noticed you could have a lot more traffic. I have found that the key to running a website is making sure the visitors you are getting are interested in your subject matter. We can send you targeted traffic and we let you try it for free. Get over 1,000 targeted visitors per day to your website. Start your free trial: Unsubscribe here:


  2. I came across your Management 202: Commercial Arbitration – THE PLATFORM website and wanted to let you know that we have decided to open our POWERFUL and PRIVATE web traffic system to the public for a limited time! You can sign up for our targeted traffic network with a free trial as we make this offer available again. If you need targeted traffic that is interested in your subject matter or products start your free trial today: Unsubscribe here:


  3. This is a comment to the Management 202: Commercial Arbitration – THE PLATFORM admin. Your website is missing out on at least 300 visitors per day. Our traffic system will dramatically increase your traffic to your site: – We offer 500 free targeted visitors during our free trial period and we offer up to 30,000 targeted visitors per month. Hope this helps 🙂 Unsubscribe here:


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.