What is a non-signatory to an arbitration agreement?

A non-signatory to an arbitration agreement is a person or party who is not a signatory to an arbitration agreement. This means that the non-signatory did not sign the document that legally binds them to the arbitration agreement. In Delaware, the courts determine whether a non-signatory can be bound to an arbitration agreement based on a three-factor test. This test looks at whether the non-signatory (1) is a party to the written arbitration agreement, (2) has a relationship to the agreement such that enforcement of the agreement is reasonable, and (3) participated in or otherwise benefited from the agreement. In some cases, a non-signatory may be bound to an arbitration agreement if the courts find that the non-signatory substantially participated in the formation of the arbitration agreement or had knowledge of the existence of the agreement. It is important for all parties involved in an arbitration agreement to remember that non-signatories in Delaware may be bound to the arbitration agreement depending on the factors mentioned above. This is important because if a non-signatory is bound to an arbitration agreement, they may be required to participate in the arbitration process and the decisions made therein.

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