The requirements concerning the involvement in litigation and arbitration show differences: Where legal or financial interests constitute the fundamental necessities to initiate court proceedings, it is usually the agreement setting up the basis for the involvement of the parties in arbitration.1 Accordingly, arbitration is inherently consensual. ‘The concept of private arbitrations derives simply from the fact that the parties have agreed to submit to arbitration particular disputes arising between them and only between them.’2 The arbitrator’s powers have a consensual basis, and accordingly, they have no authority to make orders that are binding to third parties.3 The consensual nature of arbitration may be argued to be a direct reflection of the doctrine of privity of contracts. According to the well-known statement of Lord Haldane, ‘In the law of England, certain principles are fundamental. One is that only a person who is a party to a contract can sue upon it.’4