An arbitration agreement is an agreement between the parties to submit to arbitration, whether a contract or not, all or part of disputes that have emerged or may arise between them. The following factors are essential to such an agreement: His honour, Hammer Blow J., stated that the dispute settlement clause did not prevail over a binding arbitration agreement, given that there is no critical provision in the agreement for one of the parties to refer the dispute to arbitration or dispute, let alone an indication that arbitral proceedings have priority. [3] In addition, the clause in question did not contain election words, let alone words that granted one party the right to coerce the other in one direction. It was envisaged that it could lead to arbitration or litigation, but embargoes until after mediation. .