Infering Parties' Intention To Arbitrate In Absence Of Express Arbitration Clause Under The Contract

Introduction

'Consensus ad idem' or 'meeting of minds' is an indispensable requirement under the Indian Contract Law for the formation of any valid agreement.¹ It means that two or more people agree on the same thing in the same sense. In complex commercial transactions, the intention of parties at the time of entering the contract becomes even more important as it not only binds the parties with their future obligations but also mutually & definitively ascertains mechanisms of recourse in case of breach of any such obligations. Therefore, in case of any ambiguity in interpretation of the contract the courts have relied on identifying the intention of parties at the time of execution of the contract.