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Contracts (Rights of Third Parties) Act 1999

Section 5: Protection of Promisor from Double Liability

22.Section 5 provides that where the promisee has recovered damages (or an agreed sum) from the promisor in respect of either the third party’s loss or the promisee’s expense in making good that loss, the court or arbitral tribunal shall reduce any award to the third party enforcing a term under section 1 to take account of the sum already recovered.

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