Third Parties

Question 1

third parties intro

Answer 1

third parties cannot usually rely on contracts they arent party to and they cant be bound by them. however, if linked exclusion clauses this can mean that exclusion clauses do not extend protection to third parties.

Question 2

Scrutton v Midland Silicones

Answer 2

facts: C owned goods shipped by a carrier, which limited liability for damage to $500. D, a third party unloading the goods, negligently damaged them.
held: D was not party to the contract with the exclusion clause so could not be protected by the $500 limit.
principle: a non-contracting party cannot benefit from a contract provision, even if they act on behalf of one of the contracting parties.

Question 3

New Zealand Shipping Co v Satterthwaite

Answer 3

facts: Satterthwaite acted as an agent for a company that was party to a contract containing an exclusion clause. The company’s cargo was damaged, and Satterthwaite sought to rely on the exclusion clause as its agent.
held: Satterthwaite couldnt rely on the exclusion clause in the contract since it was not a party to the contract itself.
principle: an agent cannot rely on an exclusion clause in a contract if they are not a party to the contract itself.