15.1 One person’s breach of contract or tort will often cause another to incur legal liability to a third party – for example in a simple chain of contracts where A is the employer under the main contract with B, and B subcontracts to C, C’s breach of his subcontract with B may place B in breach of his main contract with A. This chapter considers the circumstances in which losses consisting of a liability to pay damages to a third party or costs of third party proceedings may be recovered. This raises a number of procedural issues as well as issues of substantive law.