Principle

CONTRACT LAW – Privity – Guarantor Not Party to Principal Contract – Arbitration Clause Not Available to Guarantor

Area of law
CONTRACT LAW
Court
Supreme Court

This reinforces Principles 224, 416, and 501 while applying privity specifically to arbitration clauses. Privity of contract doctrine means: only parties to contract can sue on it or take benefits from it, including arbitration clauses. "A fortiori" (with stronger reason)—if non-parties can't sue on contract…

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