Transferring contracts and rights of third parties

How, when and why a contract may be changed or transferred or affected by third parties may arise in any number of differing scenarios, eg:

1. •

   when a dispute is brewing between parties, one avenue that is often explored is the renegotiation of terms

2. •

   group reorganisations may result in the need to vary, transfer or novate agreements and there may be occasions when the other party to the contract seeks to challenge that novation or transfer as a means of exiting the contract at no cost to themselves

3. •

   contracts are not necessarily immune from attack by third parties either—there can be exceptions to the 'privity of contract' rule, particularly where the contract itself confers a benefit on a third party

The following series of Practice Notes seek to address the key issues that can arise in such scenarios.

For a summary, in tabular form, of key and/or illustrative cases on contractual disputes (for judgments dating 1 January 2020 onwards), see Practice Notes:

1. •

   Contract disputes—key and illustrative decisions (2024–2025)

2. •

   Contract disputes—key and illustrative decisions (2020–2023)