Extension Of Arbitration Clause to A Third Party (Comparative Study)

Abstract

The arbitration has always been an active alternative means for disputes resolution. Yet, its importance has raised with the economic openness, the development of the international trade concepts and the expansion of construction projects as well as the escalation of their volume.

In fact, and through the years, real issues emerged concerned with the arbitration agreement and the extent of its being governed by the general rules regulating the contracts.

Actually, one of the main issues that was of my focal point through my working for the legal sector is concerned with the extent to which the arbitration clause extends to cover parties other than those of the arbitration agreement and whether the said presumption is acceptable within the framework of the arbitration process as well as the matter if the same is being in compliance with the national laws, the international practices and the court established opinions.

Hence, this research approaches the idea of the extension of the arbitration clause to cover parties other than those of the agreement together with shedding the light on some of the judicial applications in this regard to arrive thereafter at exploring the opinion of the jurisprudence regarding the said issue.

Actually, the jurisprudence and judiciary have been divided in terms of consideration of this issue to two, i.e. a traditional opinion that believes in that the clause does not extend to cover non-contracted parties and a modern one that expands the concept of the parties to the clause to establish its extension to cover others based on specific controls.

Yet, and as the arbitration procedures are connected to a subsequent judicial control, then it should be observed that the said procedures shall be in accordance with the legal procedures to avoid the revocation of the arbitration award alleging its being invalid.

In conclusion, this research deals with the controversial idea related to the extension of the arbitration clause to non-parties and sheds light on it according to the researcher's opinions and inferences.