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Rights of third parties to enforce their claims through arbitration : [case review]
Zoran Tasić
; CMS doo, Zagreb, Hrvatska
Abstract
English arbitration clauses, incorporated in charterparties, normally apply strictly to the contractual parties, i.e. owner and charterer.
The Contracts (Rights of Third Parties) Act, of 1999, enables a third party to a contract under which one party had promised to confer a benefit on that third party to enforce that promise direct against the promisor. That facility is of particular importance to chartering brokers and this case is the first time the Act has been before the courts.
The Court has decided that Cleaves, the chartering broker, who were not a party to the charterparties, were entitled, and obliged, to enforce its claim for payment of the brokerage commission direct against the owner, though arbitration, in accordance with the arbitration clause contained in the charterparties.
Keywords
case review; arbitration; carter party; rights of third parties; brokerage;
Hrčak ID:
8891
URI
Publication date:
2.8.2006.
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