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Terms in this set (38)

Third parties loss:
- Jackson v Horizon Holidays Ltd [1975] - Denning said can recover - disregard common law
- Woodar Investments v Wimpey [1980] - can't recover for third party loss

Exceptions:
- Swynson Ltd v Lowick Rose LLP (UKSC, 2017) per Lord Sumption: Transferred loss applied where known object transaction was to benefit third party and the effect of breach of duty would cause loss to third party. It had been recognised in cases where third party suffered loss as the intended transferee of the property affected by the breach.

- The Albazero [1977] per Lord Diplock: Commercial contract concerning goods, where in the contemplation of the parties that the proprietary interest in the goods may be transferred to another before any breach causing damage to the goods, an original party to the contract is to be treated as having entered into the contract for the benefit of the other person and may recover the actual loss suffered by that person.
- Linden gardens Trust ltd v Lenesta Sludge disposals ltd, St Martins property corp ltd v Sir Robert McAlpine ltd 1994: Apply Albazero rule to building contracts. Where a building development was, to knowledge of the parties, likely to be acquired by third party, and there was a prohibition on the assignment of the benefit of the contract without the consent of the builder, then the third party would foreseeably suffer loss from defective performance of the contract but would be unable personally to sue on the contract. In these circumstances the contracting party could recover in respect of the third party's loss. - applied in Darlington BC v Wiltshier Northern ltd 1995

- McAlpine v Panatown 2001
o s3(5) provides that the parties may include an express provision preventing the promisor raising any defence or set-off that would have been available against the promise
o S 3(2) provides that the promisor shall have available to him by way of defence or set-off any matter that--
(a) arises from or in connection with the contract and is relevant to the term, and
(b) would have been available to him by way of defence or set-off if the proceedings had been brought by the promisee.
o S 3(3) allows the contracting parties to include an express term that makes the third part's claim subject to all defences and set-offs arising out of unrelated matters that the promisor would have had against the promisee.
o S 3(4) provides that the promisor has the benefit of any defence etc that would have been available against the third party if the third party had been a party to the contract.
o S 3(5) provides that the parties may include an express provision preventing the promisor raising any defence or set-off that would have been available against the promise
- (iv)Enforcement of promise by promisee
o S 4 provides that s 1 does not affect any right of the promisee to enforce any term of the contract.
- (v)Protection of promisor from double liability
o S 5 prevents double liability where the promisee has sued and recovered damages and the third party then brings a claim.
- (vi)Exceptions
o S 6 excludes certain types of contract from the scope of the Act
- (vii)Existing third party rights
o S 7 provides that s 1 does not affect any right or remedy of a third party that exists or is available apart from the Act