The Subjective Scope of Arbitration Agreements under Norwegian and Danish Law

Abstract

Privity of contract is recognized as a general doctrine across the Nordic countries. The doctrine limits the subjective scope of an agreement to the contracting parties. Accordingly, an agreement between A and B binds A and B; it does not bind C.
          Arbitration agreements are subject to the doctrine as well. If A and B have agreed to resolve their disputes arising out of X by arbitration, A may not initiate arbitration against C on the basis of A’s agreement with B, and, vice versa, C may not initiate arbitration against A on that basis.
          Reality is more complicated than the A-B-C example above. The subjective scope of agreements, including arbitration agreements, gives rise to frequent disputes, and the doctrine of privity does not always provide clear answers. Under some circumstances, C may be deemed a party to the agreement despite the fact that C did not initially sign and accept the agreement. Under other circumstances, the agreement is applicable to C even though C is not a party to the agreement.