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ARTICLE · 01 MARCH 2012

Can An Arbitrator Make An Award By Consent?

It frequently happens in arbitrations that parties settle their disputes before the conclusion of the arbitration proceedings.

South AfricaReal Estate and Construction
Alastair Hay
Alastair Hay

Introduction

It frequently happens in arbitrations that parties settle their disputes before the conclusion of the arbitration proceedings.

In these circumstances it has often been the practice for the parties to ask the arbitrator to make an award by consent setting out the terms of the settlement between them.

The question as to whether such a practice is legally competent and gives rise to an award that can be enforced in the normal way recently received the attention of the Supreme Court of Appeal1.

Arbitration awards are enforced firstly by having the award declared to be an order of court on application to the appropriate High Court having jurisdiction over the parties and secondly by invoking the usual machinery for the enforcement of court orders such as execution proceedings or even contempt proceedings.

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