Third-Party Funding Agreements: Minimum Enforceability Criteria for Their Implementation

Abstract

This article analyzes the phenomenon of Third-Party Funding (TPF) and the challenges involved in implementing this contractual arrangement, given its growing expansion and adoption in Latin America. The analysis focuses on two main aspects: (i) the potential influence of TPF regulation, with an emphasis on access to justice, and (ii) the legal challenges associated with its implementation in Latin American countries, by proposing an applicable financing model based on minimum enforceability criteria. Thus, the implications of adopting TPF are explored by assessing the opportunities and risks associated with its implementation. To this end, a documentary-descriptive methodology was employed to determine the applicability parameters of this legal mechanism. It was concluded that TPF is an effective tool for facilitating access to justice in the region by reducing risks in international disputes and attracting foreign investment that enables access to such mechanisms.