LEGAL PRINCIPLE: CUSTOMARY LAW — Customary Arbitration — Conditions Precedent to a Valid and Binding Customary Arbitration
PRINCIPLE STATEMENT
The preconditions for a valid customary arbitration are: (1) voluntary submission of the dispute to arbitration; (2) agreement that the decision will be final and binding; (3) arbitration in accordance with the custom of the parties; (4) arbitrators reached a decision and published their award; (5) the decision was accepted at the time it was made.
RATIO DECIDENDI (SOURCE)
Per Edozie, JSC, in Okereke & Anor v. Nwankwo & Anor (2003) NLC-111999(SC) at pp. 5–6; Paras D–A.
"The ingredients or preconditions for a valid customary arbitration may be stated to be as follows: 1. that there has been a voluntary submission of the matter in dispute to an arbitration of one or more persons; 2. that it was agreed by the parties either expressly or by implication that the decision of the arbitrators will be accepted as final and binding; 3. that the arbitration was in accordance with the custom of the parties or of their trade or business; 4. that the arbitrators reached a decision and published their award and; 5. that the decision or award was accepted at the time it was made."
EXPLANATION / SCOPE
Customary arbitration requires five conditions. The principle applies to customary law disputes. All conditions must be satisfied. The rule ensures that customary arbitration is binding. The court will enforce valid customary arbitration awards. The principle is well-established.