Exemption Clauses And Third Parties

Question 0

What is the exception to the rule?

Answer 0

Contracts (rights of third parties) act 1999

The contract expressly provides that he may acquire a benefit

The term purports to confer a benefit on him

The clause must be constructed in a way that clearly purports a benefit on the third party. Or expressly identifies him as a member of a class or answering a particular description.

Question 1

What is the rule on third parties and exemption clauses?

Answer 1

The general rule is that an exemption clause in a contract cannot protect a third party, as the privity rule provides that only a party can rely on a clause in a contract
Adler v Dickson