Loosening the Grip of the Contracts (Rights of Third Parties) Act 1999 on Arbitration Agreements

Abstract

Section 8 of the Contracts (Rights of Third Parties) Act 1999 extends its controls to cover arbitration agreements and, in essence, makes a third party wishing to enforce his rights under a contract which contains an arbitration agreement a party to that arbitration agreement. This article critically evaluates section 8 and investigates the potential adverse impact which it may have upon the institution of international commercial arbitration. This article also considers how this area of law may be reformed so as to bring it in line with internationally accepted arbitral principles and practices.