Multiple choice

Which of the following is/are the material difference(s) between an arbitration agreement and an ordinary contract?

  1. In ordinary contract, the obligations of the parties to each other cannot, in general, be specifically enforced and their breach results only in damages.

  2. The appropriate remedy for breach of agreement of arbitrate is not damages, but its enforcement.

  3. Both (1) and (2) are correct.

  4. None of these
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C Correct answer
Explanation

In ordinary contract, the obligations of the parties to each other cannot, in general, be specifically enforced and their breach results only in damage. The arbitration clause can be specifically enforced by the machinery of the arbitration acts. The appropriate remedy for breach of agreement of arbitrate is not damages, but its enforcement.

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