CUSTOMARY LAW — Customary Arbitration — Conditions Precedent to Bindingness
Principle Statement
The conditions precedents to bindingness of a customary arbitration are as follows: (a) there must have been a voluntary submission of the disputes by the parties to the non-judicial body; (b) the parties must have agreed to be bound by the decision of the non-judicial body as final; (c) that the decision was in accordance with the custom of the people or of their trade or business; and (d) that the arbitrators reached a decision and published their award.
Ratio Decidendi (Source)
Per Ogbuagu, JSC, in Agala & Ors v. Okunsin & Ors (2010) NLC-123-25-2003(SC) at p. 26, para. D – p. 27, para. A.
"The conditions precedents to bindingness of a customary arbitration are as follows: (a) there must have been a voluntary submission of the disputes by the parties to the non-judicial body; (b) the parties must have agreed to be bound by the decision of the non-judicial body as final; (c) that the decision was in accordance with the custom of the people or of their trade or business; and (d) that the arbitrators reached a decision and published their award."
Explanation / Scope
This principle establishes the four conditions for binding customary arbitration: voluntary submission, agreement to be bound, accordance with custom, and publication of award. The principle applies where customary arbitration is relied upon. It ensures that arbitration is properly established. The principle reflects the requirements for customary arbitration. It prevents reliance on invalid arbitration. The court must require all elements. The principle provides guidance on proving customary arbitration.
