What is a non-signatory to a binding arbitration agreement?

A non-signatory to a binding arbitration agreement is a person or entity that did not sign the agreement. This means that the non-signatory did not agree to the agreement’s terms and is not subject to the agreement’s binding arbitration provision. In Texas, when it comes to international litigation law, a non-signatory may be able to enforce the terms of a binding arbitration agreement if the non-signatory is a third-party beneficiary to the agreement. That means that the non-signatory must show that the primary signatories (the parties who signed the agreement) intended to confer a benefit upon the non-signatory. In other words, the non-signatory must show that the signatories intended to provide a benefit to the non-signatory and that the signatories expected the non-signatory to rely on the agreement. Furthermore, a non-signatory must also show that it received something of value from the agreement or that it was otherwise reasonably intended to benefit from the agreement. Even if a non-signatory is a third-party beneficiary, it will not be able to enforce the agreement unless it can prove these elements. In summary, a non-signatory to a binding arbitration agreement is someone or an entity that did not sign the agreement and is therefore not subject to the agreement’s binding arbitration provision. In order to enforce the agreement, a non-signatory must be able to prove that it was a third-party beneficiary to the agreement and that it received something of value from the agreement or that it was otherwise intended to benefit from the agreement.

What is a non-signatory to a binding arbitration agreement?

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