(a) The agreement must be in written form:
The arbitration agreement or the submission of arbitration must be made in a written form and it may be made before or after the disputes arises.
(b) No need to mention name:
A person who decides dispute referred to him under arbitration is called arbitrator. The parties may name arbitrator in agreement or not. Even after concluding agreement name of the arbitration can be determined.
(c) All the essentials of valid contract:
All the essential elements of the valid contract must be present in the arbitration agreement (i.e., competent parties, free consent, certainty and clarity, legal object, consideration etc.) and it should follow the law of contract and customs of the business.
(d) Binding force of award:
Award made by the arbitrators is binding to the parties. The decision made by the arbitrator (award) concerning the dispute between agreed parties has a fully binding force.
(e) Procedural simplicity:
The procedure for the arbitration is to be brief and simple because the main purpose of arbitration is to avoid the lengthy procedure of the regular courts. There is no complex and more formal process.