What is a non-signatory to an arbitration agreement?

A non-signatory to an arbitration agreement is a party who has not signed the arbitration agreement. In Texas, an arbitration agreement is a contract between two or more parties that requires any disputes between them to be settled through a process of arbitration instead of through the court system. Non-signatories are not bound by the agreement, meaning they are not legally obligated to the terms of the agreement and are not required to participate in the arbitration process. Non-signatories may be able to enforce the terms of the arbitration agreement if they can show that they were intended to be part of the agreement or that they substantially benefited from it. For instance, if a business enters into an arbitration agreement with a customer, a non-signatory supplier may be able to enforce the agreement if it can prove that the customer and the supplier worked together in such a way that the supplier was intended to be included in the arbitration agreement or that the supplier substantially benefited from the agreement. In general, non-signatories to an arbitration agreement in Texas are not bound by the agreement, but they may be able to enforce it if they can prove that they were intended to be part of the agreement or that they substantially benefited from it.

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What is a non-signatory to an arbitration agreement?

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