Third parties

Main article: Third party beneficiary

The common law doctrine of privity of contract provides that only those who are party to a contract may sue or be sued on it.^[83][84] The leading case of Tweddle v Atkinson [1861] ^[85] immediately showed that the doctrine had the effect of defying the intent of the parties. In maritime law, the cases of Scruttons v Midland Silicones [1962] ^[86] and N.Z. Shipping v Satterthwaite [1975]^[87] established how third parties could gain the protection of limitation clauses within a bill of lading. Some common law exceptions such as agency, assignment and negligence allowed some circumvention of privity rules,^[88] but the unpopular^[89] doctrine remained intact until it was amended by the Contracts (Rights of Third Parties) Act 1999 which provides:^[90]

A person who is not a party to a contract (a “third party”) may in his own right enforce a contract if:

(a) the contract expressly provides that he may, or

(b) the contract purports to confer a benefit on him.