Copyright (c) 2001 Tulane University
Tulane Maritime Law Journal
CHARTER PARTY SYMPOSIUM: THE EFFECT OF THE CONTRACTS (RIGHTS OF THIRD PARTIES) ACT 1999 ON VOYAGE AND TIME CHARTER PARTIES
25 Tul. Mar. L. J. 519
Tony Vlasto*, Julian Clark+
It is rare that a single piece of legislation removes a principle of English law hitherto considered an essential foundation. The Contracts (Rights of Third Parties) Act 1999 1 (Act) did just that by removing the English law principle of privity of contract which had been established law since the early nineteenth century, albeit a concept which had attracted criticism from the judiciary on a number of occasions.
Since the Act gained Royal Assent on November 11, 1999, there has been sparse judicial attention, save for some consideration by the House of Lords. 2
This Article considers how the Act may affect those engaged in charter party contracts. To facilitate this investigation, we have concentrated on three common-form charter parties: the GENCON, 3 the NYPE 93, 4 and the ASBATANKVOY. 5 Thereafter follows an examination of the clauses which may give rise to application of the Act and the possible effects that the Act may have in relation to standard wordings. Further, we suggest ways in which parties may seek to exclude the operation of the Act, returning to the previous position retaining the rights in law that existed for third parties prior to the Act. Finally, we suggest how parties may seek specifically to utilise the Act to give protection to third parties whom they envisage as being directly involved, or affected by, their contracts.
In order to carry out the above tasks, it is first necessary to examine briefly the historical background which led to ...
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