Third Party Contract in UK Law

Leading Cases
  • Linden Gardens Trust Ltd v Lenesta Sludge Disposals Ltd and Others ; St Martins Property Corporation Ltd and Another v Sir Robert McAlpine Ltd (formerly Sir Robert McAlpine and Sons Ltd)
    • House of Lords
    • 22 July 1993

    The reason for including the contractual prohibition viewed from the contractor's point of view must be that the contractor wishes to ensure that he deals, and deals only, with the particular employer with whom he has chosen to enter into a contract. Building contracts are pregnant with disputes: some employers are much more reasonable than others in dealing with such disputes.

    In such a case, it seems to me proper, as in the case of the carriage of goods by land, to treat the parties as having entered into the contract on the footing that Corporation would be entitled to enforce contractual rights for the benefit of those who suffered from defective performance but who, under the terms of the contract, could not acquire any right to hold McAlpine liable for breach.

  • Don King Productions Inc. v Warren
    • Court of Appeal (Civil Division)
    • 21 December 1998

    The reason is quite simply that partnership property within s.20 Partnership Act 1890 includes that to which a partner is entitled and which all the partners expressly or by implication agree should, as between themselves, be treated as partnership property. It is immaterial, as between the partners, whether it can be assigned by the partner in whose name it stands to the partners jointly.

    I agree with the judge that Re Turcan (1888) 40 Ch.D.5 at p. 10 shows clearly that the court will protect the interests of those contractually entitled to have the benefit of an inalienable asset before the fruits of the asset have been realised. In that case, as the House of Lords considered in Linden Gardens Ltd v Lenesta Ltd [1994] 1 AC 85, 106, the court gave effect to the intention of the parties by means of a declaration of trust.

  • Investors Compensation Scheme Ltd v West Bromwich Building Society
    • House of Lords
    • 19 June 1997

    (1) Interpretation is the ascertainment of the meaning which the document would convey to a reasonable person having all the background knowledge which would reasonably have been available to the parties in the situation in which they were at the time of the contract.

  • Hely-Hutchinson v Brayhead Ltd
    • Court of Appeal (Civil Division)
    • 22 June 1967

    It is express when it is given by express words, such as when a board of directors pass a resolution which authorises two of their number to sign cheques. It is implied when it is inferred from the conduct of the parties and the circumstances of the cape, such as when the board of directors appoint one of their number to be managing director. They thereby impliedly authorise him to do all such things as fall within the usual scope of that office.

  • Nisshin Shipping Company Ltd v Cleaves & Company Ltd
    • Queen's Bench Division (Commercial Court)
    • 07 November 2003

    The third party never was expressed to be a party to the arbitration agreement but, in view of the fact that he has in effect become a statutory assignee of the promisee's right of action against the promisor and because, by reason of the underlying policy of the 1999 Act expressed in section 1(4) he is confined to the means of enforcement provided by the contract to the promisee, namely arbitration, he is to be treated as standing in the shoes of that promisee for the purpose only of the enforcement of the substantive term.

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Books & Journal Articles
  • Legal Institutions and Informal Networks
    • No. 18-1, January 2006
    • Journal of Theoretical Politics
    The relationship between third-party contract enforcement and informal networks raises important sociological, political, and economic questions. When economic activ...
    ... ... ABSTRACT The relationship between third-party contract enforcement and informal net- ... ...
  • Computer Maintenance — Speed and Quality are Vital
    • No. 86-9/10, September 1986
    • Industrial Management & Data Systems
    • 3-4
    The need for thirdparty companies to provide computer maintenance is certain to become more widespread as end users become more knowledgeable and specific in their requirements. The strength of a ...
    ... ... It would seem therefore that the need for third-party companies to provide computer maintenance ... There is also likely to be more contract flexibility. What other factors should be ... ...
  • Knowledge sharing in projects: does employment arrangement matter?
    • No. 44-2, March 2015
    • Personnel Review
    • 255-269
    Purpose: – The core of project management is the management of a temporary task, often with a high degree of uniqueness. The purpose of this paper is to address project management issues where anot...
    ... ... and external consultants employed by a third party; which is the most common external ... of temporality (work task and employment contract)fall into two distinct domains. The field of ... ...
    • No. 55-1, February 2008
    • Scottish Journal of Political Economy
    Within an incomplete contract setting, the paper analyses the role of third parties in ameliorating incentive problems arising in the context of financial contracts with costly verification and len...
    ... ... Menichini n Abstract Within an incomplete contract setting, the paper analyses the role of third parties in ameliorating ... ficiency, as it is when the contract offer comes from the informed party, but to ensure project realisation, and thus to ensure that the surplus ... ...
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  • Chapter ESM8475
    • HMRC guidance manuals collection
    • HM Revenue & Customs
    ... ... Before you can give an opinion on a contract, you may need to see a third party contract. This ... ...
  • Chapter IHTM28292
    • HMRC Inheritance Tax Manuals
    • HM Revenue & Customs
    ... ... the person they were due to was not a party to the agreement. But any sums payable must be ... Usually, where a contract is made under Scots Law between two parties, only ... A third party does not acquire either rights or ... ...
  • Chapter OT43450
    • HMRC guidance manuals collection
    ... ... The third party oil company is paying for both the supply ... to each party from the third party contract. Whilst the precise circumstances will vary from ... ...
  • Chapter NMWM05110
    • HMRC guidance manuals collection
    • HM Revenue & Customs
    ... ... is supplied by an agent to do work for a third party (the principal). The work is done under a ... in an agency situation there is a contract between: ... the agency and the third party ... ...
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