Third Party Agreement Act

Although the issue is not debated in the Law Commission report or in the bill itself, it is generally considered that the third party has no right against the promise, regardless of its rights against the promisor. [32] Andrew Burrows, who wrote the Law Commission report, stated that the third party does not acquire any rights against the promised[33] which Treitel also proposed. [34] Scottish legislation takes a different position when a commitment to the third party is required to enforce the contract. [35] During the passage of the legislation, there was much discussion about whether a third party would be bound by a compromise clause in a contract. The original bill and its explanations suggest that a third party could be bound, but the Lord Chancellor`s comments indicated that Parliament did not intend to compel a third party to submit to a compromise clause. Section 6 makes derogations from the scope of the act. Although the law applies to standard contracts and contracts entered into through documents, it does not apply to contracts entered into as part of tradable instruments, foreign exchange or debt securities or contracts under the Companies Act 1985[47], such as Z.B. [48] The Act also excludes goods contracts across national borders. , which fall under international trade law[49] and the terms of an employment contract that allow a third party to sue a worker. [47] These have been excluded for one in two reasons – either the third-party position in these types of contracts is too well established to be slightly modified, or there are public policy reasons that allow the participation of third parties, such as contracts. B work, is a bad idea.

[50] This possible extended category of beneficiaries is a factor in the tendency in the construction sector to exclude third-party rights through an explicit contract term. Section 4 is intended to preserve the status quo and the commitment to apply any contractual clause regardless of a third party`s right of action. Contracting parties are free to grant narrow or extended rights to third parties or to exclude the law altogether. The latter approach was adopted by the authors of certain standard contracts, such as the typical form of architect appointment in 1999, the terms of the CEA`s commitment, the ICE 7th edition edition and the JCT standard forms (although the Joint Contracts Tribunal may change its position as soon as it has had the opportunity to examine in more detail the provisions of the law). The law allows the administrator to list additional defensive measures that can be used against the third party in the contract, which can be used to circumvent the decision of the legal commission, not give the promiseor an equal defense against the third party and simply promise by listing the additional defense facilities to which the promisor would have access. [41] Section 4 reserves the right to apply a possible contractual clause. [43] This allows the one who promises to complain about losses for himself, but not about the losses of the third. [44] The Contracts (Rights of Third Parties) Act 1999 allows the creation of third-party rights through a contract.

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