Extension of Arbitration Agreement to Third Parties: Legal Aspects

This thesis is dedicated to a very controversial topic – extension of the arbitration agreement to third parties. Traditionally, only parties, who signed arbitration agreement, are obliged to arbitrate their disputes. For years scholars, tribunals and national courts have tried to provide some guidance as to whether it is possible to bind a third party (non-signatory) by the arbitration agreement it did not sign and today, finally, we may observe a shift from traditional consensual approach to arbitration, which allows to bind a non-signatory party with arbitration. At the same time, the requirement of consent cannot be completely neglected, since a non-signatory can be bound to arbitrate only when it is possible to presume or at least facilitate the deduction of consent. In course of this thesis it will be proved that arbitration agreement can be extended to a third party (non-signatory) either by applying traditional or implied consent theories. The most significant issues related to participation of third parties in international commercial arbitration are likewise covered in this thesis, namely: 1) consensual nature of arbitration, 2) applicable law, 3) participation of non-signatory states and challenges related therewith, 4) Russian practice related to the issue of participation of non-signatory parties in arbitration.