THE SCOPE OF ARBITRATION CLAUSES IN AGREEMENTS IN NIGERIA

Abstract

This article seeks to examine the scope of arbitration agreements in contracts between parties. It also appraises the sources of arbitration law, the nature and basis of arbitration and what constitutes arbitration agreement. The article sheds light on the status of arbitration clause in a contract and whether said clause is independent and autonomous of the contract. It also examines the rights of parties to an agreement containing arbitration clause, the benefits of arbitration as an alternative dispute resolution mechanism and the consequences of an arbitral declaration on parties. The requirements of a valid arbitration agreement, how to draft a valid arbitration clause, the right of parties to include arbitration clause in their agreement and how an arbitral award is enforced vis-à-vis the Arbitration and Mediation Act, 2023 is discussed. Using the doctrinal research methodology, this article examines the nature of arbitration clause and how it can be executed or terminated, what disputes can be referred to arbitration. The powers and roles of the institution or body saddled with the responsibility of governing the arbitration process protecting the rights of parties who enter into agreements containing arbitration clauses. The loopholes in the laws governing arbitration clauses are laid bare and practical recommendations are proffered for the purpose of ensuring proper drafting and execution of arbitration clauses in agreements in Nigeria.