Parties to a commercial contract agreed to refer disputes to arbitration. One party sues in the High Court. What is the effect of section 9 of the Arbitration Act 1996?
Answer and explanation
Correct answer: A. The other party can apply for a stay, and the court must grant it unless the agreement is void or inoperative
- Step 1: Section 9 supports the parties' choice of arbitration.
- Step 2: A party to the arbitration agreement can apply for a stay, and the court must grant it unless the agreement is null and void, inoperative or incapable of being performed.
Answer
The other party can apply for a stay, and the court must grant it unless the agreement is void or inoperative.
Why not the others: Arbitration clauses are enforceable; consent is not needed; transfer is not the statutory consequence.
Practise more Arbitration and alternative methods.
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