It is a well known principle in English law that a contract can be concluded for the benefit of a third party. It is also well established that a party can contract to its own detriment by, for example, waiving the right to sue another party. But how about two parties contracting to the detriment of a third party?
Consider the following (leaving aside public policy considerations): you are involved in a car accident. You get off reasonably lightly, but the other car is a write-off. The fault lies mainly (90%) with the other driver. The owner of the other car has entered into an agreement with the driver to the effect that he has waived all rights to sue the driver. The owner sues you. You, not unreasonably, decide to claim a contribution from the driver of the car. After all, Section 1(1) of the Civil Liability (Contribution) Act 1978 provides:
