Commentary

73.7 Aim of the Act; statutory right given to third parties

BOILERPLATE AND COMMERCIAL CLAUSES vol 4(3)
| Commentary

73.7 Aim of the Act; statutory right given to third parties

| Commentary

2: DETAILED REVIEW OF THE CONTRACTS (RIGHTS OF THIRD PARTIES) ACT 1999

73.7 Aim of the Act; statutory right given to third parties

The central purpose of the Contracts (Rights of Third Parties) Act 1999 is to allow a third party a right to enforce a term of a contract in two situations namely where:

  1. (a)

        the contract states explicitly that the third party may do so1; or

  2. (b)

        a term of the contract purports to confer a benefit on the third party2.

This provision only applies if on the proper construction of the contract it

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