HL Deb 10 November 1999 vol 606 c1364

(" .—(1) Where—

  1. (a) a right under section 1 to enforce a term ("the substantive term") is subject to a term providing for the submission of disputes to arbitration ("the arbitration agreement"), and
  2. (b) the arbitration agreement is an agreement in writing for the purposes of Part I of the Arbitration Act 1996, the third party shall be treated for the purposes of that Act as a party to the arbitration agreement as regards disputes between himself and the promisor relating to the enforcement of the substantive term by the third party.

(2) Where—

  1. (a) a third party has a right under section 1 to enforce a term providing for one or more descriptions of dispute between the third party and the promisor to be submitted to arbitration ("the arbitration agreement"),
  2. (b) the arbitration agreement is an agreement in writing for the purposes of Part I of the Arbitration Act 1996, and
  3. (c) the third party does not fall to be treated under subsection (1) as a party to the arbitration agreement, the third party shall, if he exercises the right, be treated for the purposes of that Act as a party to the arbitration agreement in relation to the matter with respect to which the right is exercised, and be treated as having been so immediately before the exercise of the right.")

The Lord Chancellor

My Lords, I beg to move that the House do agree with the Commons in their Amendment No. 3. I spoke to this amendment with Amendment No. 2.

Moved, That the House do agree with the Commons in their Amendment No. 3.—(The Lord Chancellor.)

On Question, Motion agreed to.