Binding a Non-Signatory to an Arbitration Agreement under Chinese and Swiss Laws (I)

December 10, 2021 | BY

Susan Mok

Luka Groselj of Schellenberg Wittmer and Runyang Liu of Zhong Lun Law Firm compare the legal principles and exceptions to the extension of arbitration agreements to non-signatories under Chinese and Swiss legal frameworks including succession, transfer, performance, guarantee, and subrogation and when the non-signatory may be bound by arbitration agreements

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Summary

  • Laws and precedents in Switzerland and China support several theories to bind non-signatories to an arbitration agreement.
  • Third parties may be bound by an arbitration agreement through an assignment of claim, assumption of debt, or transfer of a contractual relationship.
  • An arbitration agreement can be deemed to extend to a non-signatory where it intervenes in either the conclusion and/or performance of a contract containing an arbitration clause in such a way as to display an intention.