111Third parties

111  Third parties

 (1) An entity, when entering into a contract with a third party that includes a right of subrogation in favour of the third party, must use its best endeavours to ensure that the contract includes a provision requiring the third party and its agents:

 (a) to comply with Division 2 of Part 5 (the model litigant obligation) when undertaking that litigation on behalf of the Commonwealth or the entity; and

 (b) to consult with the entity if any matters relevant to Part 2 (tied areas of Commonwealth legal work) and Division 2 of Part 3 (sharing advice within Government) arise in the course of undertaking that litigation on behalf of the Commonwealth or the entity.

 (2) The operation of these Directions extends to any legal services which the entity has the ability to control as a result of an indemnity given to, or an arrangement made with, another body or person.