Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Arbitration definition

What does Arbitration mean? Arbitration is a private process where parties resolve disputes by one or more arbitrators who issue a final, binding award instead of a court judgment. It is consensual, usually agreed by an arbitration clause, and the law of the seat governs the procedure (lex arbitri). In England and Wales and Northern Ireland, the Arbitration Act 1996 applies. Courts stay court proceedings in favour of arbitration, provide support, and enforce awards; challenges are limited to lack of jurisdiction (s.67), serious irregularity (s.68) and, unless excluded, appeal on a point of law (s.69). In Scotland, the Arbitration (Scotland) Act 2010 provides a similar...

Third party rights and arbitration: the Contracts (Rights of Third Parties) Act 1999, conditional benefit, Nisshin v Cleaves, Blue Sky, and drafting (England and Wales)

Published by a LexisNexis Arbitration expert

Practice notes

Contract (Right of third parties) Act 1999 and arbitration

This Practice Note examines the effect of the Contract (Right of Third Parties) Act 1999 (C(RTP)A 1999) on arbitration, in particular, and more generally, with emphasis on the settled rule that only signatories to an arbitration agreement can be bound, take part in the proceedings, and be subject to any arbitral award. It also addresses the conditional benefit principle. The Note surveys the leading authorities Nisshin Shipping Co Ltd v Cleaves and Fortress Value Recovery Fund v Blue Sky Special Opportunities Fund. The subject is also described as privity of contract in international arbitration, the interaction between C(RTP)A 1999 and arbitration, and third parties and arbitration. Under English common law, the orthodox privity doctrine provides, broadly, that only those party to a contract have rights under it and only those parties bear liabilities under it. As an arbitration agreement is contractual in nature, it follows that, at common law, only those who consented to arbitrate can be compelled by it or can rely upon it...

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James Hayton

LK Law LLP

James Hayton leads the arbitration practice at LK. He has extensive experience with resolving disputes through commercial litigation and international arbitration, across a variety of industries, including financial services, professional services and the art world. He has handled arbitrations under the LCIA, ICC, ICSID and UNCITRAL rules, as well as ad hoc arbitrations, and has also seen the process from the Tribunal’s point of view as Secretary of the Tribunal. James has been published in leading journals on topics in international arbitration and civil procedure. He is a contributor to Arlidge, Eady & Smith on Contempt (5th ed., Sweet & Maxwell) on breaches of civil orders and undertakings. James founded the University of Cambridge’s alumni arbitration association (CamARB) and also chairs the Balkan Arbitration Conference, the first and leading arbitration conference for the Balkan region as a whole. ...

Web page updated on 21/05/2026

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