Amsprop Trading Ltd v Harris Distribution Ltd [1997] 1 WLR 1025

Key point
  • The effect of s56 LPA 1925 is not to allow third party beneficiaries to enforce a covenant
  • A head landlord (C) attempted to sue on a covenant in the underlease between his tenant and a sublessee, which stated stated that the head tenant is permitted to conduct repairs and claim reimbursement from the sublessee
Held (High Court)
  • Claim denied; C was not entitled to enforce the covenant
Neuberger J
  • On the facts the covenant was expressed to be made only with the landlord of the sublessee, the lessees
  • Although the covenant was clearly for the benefit of C, C was not entitled to enforce it as it was not party to the covenant
  • Pursuant to Beswick v Beswick, S56 LPA 1925 does not allow a third party to sue on a contract merely because it is made for his benefit, it must purport to be made with him
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