Page:Contracts (Rights of Third Parties) Ordinance (Cap. 623).pdf/9

Contracts (Rights of Third Parties) Ordinance Ord. No. 17 of 2014 Section 9 :(b) the promisee has recovered from the promisor a sum for—
 * (i) the third party’s loss in relation to the term; or
 * (ii) the expense to the promisee of making good to the third party the default of the promisor in relation to the term.

(4) In any proceedings brought under section 4 before a court or arbitral tribunal by the third party, the court or arbitral tribunal must reduce any award to the third party to the extent to which it thinks appropriate to take account of the sum.

12. Arbitration agreement

(1) Subsection (2) applies if a third party’s right to enforce a term of a contract under section 4 is subject to an arbitration agreement.

(2) As regards a dispute between the third party and the promisor relating to the enforcement of the term by the third party, the third party is treated as a party to the arbitration agreement for the purposes of the Arbitration Ordinance (Cap. 609).

(3) Subsection (2) does not apply if, on a proper construction of the contract, the third party is not intended to be so treated.

(4) Subsections (5) and (6) apply if—
 * (a) a third party may enforce a term of a contract under section 4;
 * (b) the term—
 * (i) provides that one or more descriptions of dispute between the third party and the promisor is to be submitted to arbitration; and
 * (ii) constitutes an arbitration agreement; and