The Extension of Arbitration Agreements to Non-Signatories in International Commercial Arbitration

Year 2017, Volume: 49 Issue: 66, 55 - 90, 31.10.2018

Begüm Yiğit

Abstract

Due to the growth and the sophistication of international business relations, it became clear that there are circumstances in which third parties that have not signed or similarly assented to an arbitration agreement may be both bound and benefitted from its terms. In this respect, the arbitration doctrine and practice use a wide range of theories to compel non-signatories to arbitrate. The main aim of this study is to analyse conditions that allow an arbitration agreement to be extended to non-signatories; to reconcile the requirement of the consent to arbitrate with the necessities of modern developments in international trade; and to emphasize the importance of functional consent and equitable considerations with regard to non-signatory issues. In order to achieve these purposes, the present paper will focus on the most controversial four legal theories – the group of companies doctrine, piercing the corporate veil, third party beneficiary rule and guaranty agreements - under which arbitration agreement can be extended to non-signatories and will provide a commentary regarding the recent trends observed in this matter. 

Keywords

Arbitration agreement, Non-signatories, Third parties, Extension, Third Party Beneficiary, Guaranty Agreements, Group of Companies, Piercing the Corporate Veil

References

• To cite this article: Yigit, Begum: “The Extension of Arbitration Agreements to Non-Signatories in International Commercial Arbitration’’, Annales de la Faculté de Droit d’Istanbul, 49(66), 2017, p.55-90. https://dx.doi.org/10.26650/annales.2017.49.66.0004.