E-mail correspondence can create a concluded contract and binding arbitration agreement without a formally signed contract.

Exchange of e-mails and related correspondence can constitute a concluded contract and a binding arbitration agreement when the offer contains the material terms, the parties negotiate and accept the essential commercial conditions, and the final communication amounts to unconditional acceptance. The Court held that a formal signed contract is not necessary where the arbitration clause is recorded through communications, because Section 7 of the Arbitration and Conciliation Act, 1996 recognises agreements evidenced by letters and other exchanges. Later draft documents and minor unresolved details did not negate the parties' intention to contract and arbitrate, so appointment of an arbitrator under Section 11(6) was maintainable.

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Issues: Whether the exchange of e-mails and related correspondence between the parties resulted in a concluded contract containing a valid arbitration agreement, warranting appointment of an arbitrator under Section 11(6) of the Arbitration and Conciliation Act, 1996.

Analysis: The offer of 15.10.2007 contained the material terms of the transaction, including the arbitration stipulation, and the subsequent correspondence showed that both sides negotiated and accepted the essential commercial terms. The respondent's final e-mail confirming the deal for five shipments amounted to an unconditional acceptance, completing the contract under Section 4 of the Indian Contract Act, 1872. The Court also held that an arbitration agreement need not be embodied in a formally signed contract, because Section 7 of the Arbitration and Conciliation Act, 1996 recognizes an agreement recorded through exchanges of letters and other communications. The later draft documents and minor unresolved details did not detract from the concluded agreement or the parties' intention to arbitrate.

Conclusion: A valid concluded contract and a binding arbitration agreement existed, and the request for appointment of an arbitrator was maintainable.

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