Both nations recognized that a mechanism was desirable to avoid possible future conflicts. The Olney Pauncefote Treaty of 1897 was a treaty proposal between the United States and Great Britain in 1897, which preferred the resolution of important disputes. The treaty was rejected by the U.S. Senate and never entered into force. [26] In the eyes of the law, agreements on the referral of disputes to arbitration generally have a special status. For example, in the event of a dispute relating to a treaty, a common defence is to invoke the fact that the contract is void and that, consequently, any right based on it fails. It follows that if a party successfully asserts that a contract is inconclusive, any clause contained in the contract, including the arbitration clause, would be void. However, in most countries, the courts have accepted: Section 7 of the Arbitration and Conciliation Act 1996 lists that an arbitration agreement may take the form of a separate agreement or arbitration clause in the treaty. . .

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