An arbitration agreement is governed by Section 7 of the Arbitration and Conciliation Act, 1996. It may be a clause under the contract (of service/partnership etc...) or as aspirate agreement Where three partners have been carrying out business in partnership under a partnership deed, and disputes and differences arise between them regarding the management of the business, the partners may enter into a separate arbitration agreement. In such an agreement, the parties agree to select this method for dispute resolution. Such an agreement is valid if and only if all three parties indicate their consent. It determines the role of the arbitrators if such a situation arises.