This was an appeal against a decision that some third parties were entitled to enforce a transfer agreement between two individuals and The Bathroom Trading Company under the Contracts (Rights of Third Parties) Act 1999.

Avraamides brought a claim against The Bathroom Trading Company in respect of a refurbishment of bathrooms. The refurbishment had been carried out by an individual, but the claim was brought against a company. The action was based upon a transfer agreement. Under that agreement The Bathroom Trading Company assumed all of Colwill and Martin’s liability. At first instance, the judge held that Colwill and Martin were liable to Avraamides. Colwill and Martin appealed.

Liability had been found on the basis of Section 1(3) of the 1999 Act. That section stated that “a third party must be expressly identified in the contract by name, as a member of a class or as answering to a particular description but need not be in existence when the contract is entered into.” The appellant argued that the claimant had not been identified at all in the transfer agreement, and therefore they were not owed any duty.

Did a third party, under the Contracts (Right of Third Parties) Act 1999, have to be expressly identified by name?