The arbitration agreement is defined as written under Section 2 (a) of the Arbitration Act, 1940 i.e.

written agreement which present current or future dispute of

parties to arbitration , irrespective of the name of the arbitrator in it or not. An arbitration agreement or
an arbitration clause in an agreement is sometimes termed

as ‘submission’. Arbitration agreement is also termed as ‘reference’. The arbitration agreement defined
by Halsbury, ‘It is an agreement made by two or more parties

between whom some difference has arisen or may hereafter arise whereby they appoint another person
to adjudicate upon such dispute and agree to be bound by his

decision. There are some essentials which needs to follow for a valid arbitration agreement like the
agreement must be in a written form containing minimum terms of

arbitration. The important objective of written agreement is that the parties should agree to resolve the
dispute through arbitration. It must contains the essential

elements of a valid contract such as offer and acceptance, competent parties, consent, lawful
consideration etc. The features of arbitration are that it is a private

tribunal chosen by the parties. A person appointed to resolve the differences or disputes is called an
‘Arbitrator’, the proceeding is termed as ‘Arbitral Proceeding’

and the decision imparted is termed as ‘Award’. Signing an Arbitration Agreement also leads to giving up
important rights. So, before signing the agreement, one should

properly read the terms of agreement and must reject or negotiate upon the inconvenient terms.