What is a non-signatory to an arbitration agreement?
A non-signatory to an arbitration agreement is a person or entity that did not sign the arbitration agreement but may be involved in the dispute. In South Carolina, parties to a dispute or contract may agree to resolve their dispute through arbitration instead of going to court. These parties must agree on the terms of the arbitration in the form of a written agreement, and each party must sign the agreement for it to be valid. A non-signatory to the arbitration agreement may include an individual or entity that is involved in the underlying dispute but was not a party to the original arbitration agreement. For example, if two companies enter into an arbitration agreement but later a third company gets involved in the dispute, that third company may not have signed the agreement. However, the arbitrator may still have jurisdiction over the non-signatory if the dispute involves the same subject matter included in the arbitration agreement. In South Carolina, a non-signatory to an arbitration agreement may be able to challenge the validity or enforceability of the arbitration agreement if the non-signatory was not given proper notice of the agreement or other factors are present. However, a non-signatory may also be bound by the arbitration agreement if the dispute is deemed to fall within the scope of the agreement.
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