Laemthong International Lines Co Ltd v Artis (The Laemthong Glory) [2005] EWCA Civ 519

Court: Court of Appeal

Facts: This case involved a dispute over a Letter of Indemnity (LOI) issued for the delivery of cargo. The shipowners sought to enforce the LOI against the cargo receivers under the Contracts (Rights of Third Parties) Act 1999.

Issue: Could the shipowners enforce the terms of the LOI against the cargo receivers as third parties under the 1999 Act?

Held: The court held that the shipowners were entitled to enforce the LOI, as it conferred a benefit upon them as third parties under the 1999 Act.

Key Judicial Statement: The court noted that LOIs must be analyzed based on their wording to determine the rights of third parties to enforce their terms.

💡 LevelUpLaw: Third parties can enforce contract terms if the contract expressly or implicitly intends to confer a benefit upon them, as permitted by the Contracts (Rights of Third Parties) Act 1999.