The Effectiveness Of The Arbitration Agreement Expansion Problem

With the development of economic and society, the position of arbitration in resolving the civil and commercial disputes is being widely used. More countries are in support of arbitration and encouraging the system of arbitration in a large scale. The range of the issues of arbitration and the arbitrating subjects are also being extended. The arbitration system ,as an effective way to resolve problems is playing a vital role in the modern society. Among the extension, one extension is that the validity of the arbitration agreements be extended tothe nonsignatory party under the special circumstances.This article aims to illustrate the validity of the arbitration agreement and raise some cases for analysis. At the same time, I used the way of comparison and summary of the effectiveness of the arbitration agreement. By discussing the expansion of the legal basis and the factors affecting the effectiveness of the arbitration agreement. I stated the possible legal obstacles it may encountered and analyzed its solution, combined with the practice in order to find a better reconstruction of the validity of arbitration agreement in judicial practice.This article is composed of forward ,text and the conclusion. The text is divided into four chapters which were discussed in detail as follows:Chapter 1 has an overview of the validity of the arbitration agreement , It clarifies the basic concepts of the arbitration agreement, such as the form of arbitration agreement, substantial elements and formal factors, resulting in the question of expansion in the arbitration agreement. Chapter 2 describes the theoretical basis of the validity of the arbitration agreement. This chapter discusses the rationality of the effectiveness of arbitration agreement. Chapter 3 introduces the theoretical misunderstanding of the validity of arbitration agreement and the legal obstacles to find the better solution to overcome the drawbacks. Such as demands for arbitration agreements of written form, the independence of arbitration clause, and the privities of contracts. After that, by introducing and analyzing the interpretation for the extension of exception of privities of contracts, I seek the way of breaking through the plight of the legal theories. Chapter 4 draws a conclusion that the validity of the arbitration agreement shall be summarized. The extension of the validity of arbitration agreements to the nonsignatory party is effective. Besides, finding a better way to solve the problem under special circumstances has a significant meaning to domestic parties when they trade in international commercial market.