Contract law : Extension of contract on phone via e-mail valid

An arbitration agreement could be extended even by an email from a cellphone, the Bombay High Court observed last week in its judgment in the case, Diversey India Ltd vs Waverly Ltd, Sri Lanka. The agreement to distribute the products of the Indian company in Sri Lanka was terminated by Waverly, but it was extended for a few weeks during talks which were recorded in the Lankan MD’s email sent from his phone. This was confirmed in emails from the Indian company. When the dispute of the companies went before the arbitrator, he ruled that the contract was not extended, ignoring the emails. The high court held that his view was “perverse and patently illegal”. An arbitration clause could be extended by email, followed by subsequent conduct of the parties as in this case

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