A contractual time bar that prevents the commencement of arbitration (a 'remedy-barring clause') renders the arbitration agreement inoperative or incapable of being performed within the meaning of s 7(5) of the International Arbitration Act 1974 (Cth), thereby removing the mandatory stay otherwise required by s 7(2). Agreement to apply the rules of an arbitral institution (such as the Stockholm Chamber of Commerce) constitutes an agreement to exclude the UNCITRAL Model Law under s 21 of the IA Act. Claims for unconscionable conduct under the Trade Practices Act, quantum meruit and unjust enrichment fall within a broadly worded arbitration clause covering disputes 'arising out of or in connection with' the contract.
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