Abstract
It is generally accepted that an arbitration agreement binds the parties to the arbitration agreement only based on the doctrine of the privity of contract. However, this doctrine has been radically altered by the Contracts (Rights of Third Parties) Act 1999 (hereinafter CRTPA). The CRTPA in s.8(1) affirms the rights of third parties to enforce an arbitration agreement provided a third party is conferred a legally enforceable benefit to the dispute being arbitrated. This article critically analyses the effect and the legal issues of the doctrine of the privity of contract engaging with the third parties in enforcing an arbitration agreement by referring to case law prior and after the CRTPA. The findings indicate that although the CRTPA has a potential thrust to lead the changes in the way in which contracts can be enforced by the third parties, some legal issues remain unsolved. The third parties’ engagement to the enforcement of the arbitration procedure are affirmed under s.1(1) and s.8(1), but the case law demonstrates that a clear language in the contract from the signing parties is required to allow such an enforcement. Questions remain: (i) to what extent in a contact has a third party been enabled to obtain rights under the CRTPA?; and (ii) whether the CRTPA contradicts with art.II and art.IV of the New York Convention 1958 regards the parties’ signatory requirement to enforce the arbitration agreement against a third party.
| Original language | English |
|---|---|
| Pages (from-to) | 153-174 |
| Number of pages | 22 |
| Journal | International Arbitration Law Review |
| Volume | 25 |
| Issue number | 2 |
| Publication status | Published - 22 Jun 2022 |
Bibliographical note
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ASJC Scopus subject areas
- Political Science and International Relations
- Law