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ADR & Mediation
CPD Points:
Up to 1 point. details »

Due to the difference in guidelines between the SRA and the Bar Standards Board, CPD points are awarded differently for Solicitors, Barristers and Legal Executives:

Regulated by the Solicitors Regulation Authority:
Listen and pass the quiz: Gain 1 CPD point (60 minutes)
Listen only, gain ½ a CPD point (30 minutes)

Regulated by the Bar Standards Board:
Listen and pass the quiz: Gain 1 accredited CPD point (60 minutes)

Regulated by ILEX:
Listen and pass the quiz: Gain 1 CPD point (60 minutes)
Listen only, gain ½ a CPD point (30 minutes)

  • FREE
30 minutes of audio
(+ optional 5 minute online quiz)
Plays on Computer:
Yes Downloadable as MP3:    Yes
Course Aims:

This podcast aims to inform the listener about the situations in which a third party may become involved with an arbitration agreement although he was not an original party to it. The podcast aims to engage the listener in a discussion of how this compares to privity of contract, and provides the listener with a detailed discussion of the case-law on this subject. Further, the podcast aims to provide the listener with advice on how to deal with this type of situation in practice.

After completing the course you will:
  • Have an understanding of the issues with regards to third parties taking the benefit or the burden of arbitration agreements that they were not originally party to;
  • Be aware of the relevant case-law governing this area of law;
  • Have knowledge of the statutory provisions that may allow a third party to enforce terms in a contract;
  • Be able to criticise the current law.
Beginner Difficulty: 1 of 5
Legal Principles
Sources and References:
  • s 136 Law of Property Act 1925;
  • Arbitration Act 1996;
  • Contracts Rights of Third Parties Act 1999;
  • Third Parties (Rights Against Insurers) Act 1930;
  • West Tankers Inc v Ras Riunione Adriatica Di Sicurta and another ('The Front Comor') [200] EWHC 454 (Comm);
  • Eurosteel Ltd v Stinnes AG [2000] 1 All ER (Comm) 964;
  • Republic of Kazakhstan v Istil Group Inc [2006] EWHC 448 (Comm);
  • Allianz SpA (formerly Riunione Adriatica Di Sicurta SpA) v West Tankers Inc. Case C-185/07;
  • NBP Developments v Buildko & Sons Ltd (1992) 8 Const LJ 377;
  • Metliss v National Bank of Greece and Athens SA [1957] 2 QB 33;
  • London Steamship Owners Mutual Insurance Association Ltd v Bombay Trading Co Ltd, ('The Felice') [1990] 2 Lloyd's Rep 21n;
  • Willie (Charles M) & Co (Shipping) Ltd v Ocean Laser Shipping Ltd, G Roussos Sons SA v Charles M Willie & Co (Shipping) Ltd, The Smaro [1999] 1 Lloyd's Rep 225;
  • Nisshin Shipping Co Ltd v Cleaves & Co Ltd [2003] EWHC 2602 (Comm).

This podcast discusses the circumstances in which third parties who are not party to the original agreement may be bound by, or take the benefit of, an arbitration agreement. This podcast details how such a change may take place, and the procedures that must be followed in doing so. Further, this podcast considers situations where an insurer may be subrogated to contractual rights, and details the statutory provisions that enable third parties to enforce contractual terms.

Podcast added: 18/08/09

Podcast last reviewed: 2011-07-25

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