| Commentary

73.13 Arbitration

| Commentary

73.13 Arbitration

If a term of the contract provides that a dispute is to be settled by arbitration, then the third party is also bound by that term. A third party is to be treated as a party to an arbitration agreement as regards ‘disputes between himself and the promisor relating to the enforcement of the substantive term by the third party’1. This applies where2:

  1. (a)

        the right under the Contracts (Rights of Third Parties) Act 1999 Section 1 to enforce a term (the ‘substantive term’) is subject to a term providing for the submission

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