A allowed B to charter his boat, who in turn allowed C to charter it. C wrote B a letter of indemnity, offering to indemnify B, B’s agents and servants etc all bail, securities etc should the boat be arrested. A tried to sue C to gain the costs of bailing the boat after it had been arrested. CA held that the owners were the agents of the charter parties and could therefore claim under s.1 (1) B of the 1999 act. S.1(2) doesn’t apply since there is no evidence that the parties did not intend A to be able to sue and the fact that both parties envisaged that it would be the owners who actually delivered the cargo shows C must have known that it was A who would take advantage of the letter of indemnity.
