Extending Arbitration Agreements To Third Parties: Principles And Challenges In English Law

The extension of arbitration agreements to third parties is a complex but rigid area of English law. In light of the ever-growing prevalence of intricate multi-party and multi-jurisdiction disputes, courts and arbitral tribunals have found themselves balancing principles of privity of contract with public policy to determine when, why, and how arbitration agreements should be extended to non-signatories.

This note examines the legal principles applicable to the practice of extending arbitration agreements to third parties in England, while identifying the key challenges in this area of law.

Consent to Arbitrate

Arbitrations are, first and foremost, creatures of contract. This is to say that they derive their power and their form from an underlying arbitration agreement and the consent of its signatories.