Contract Act

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ACTA

Unit: paga RA Proof 2.11.99

Contracts (Rights of Third Parties) Act 1999

CHAPTER 31

ARRANGEMENT OF SECTIONS

Section

1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

Right of third party to enforce contractual term. Variation and rescission of contract. Defences etc. available to promisor. Enforcement of contract by promisee. Protection of promisor from double liability. Exceptions. Supplementary provisions relating to third party. Arbitration provisions. Northern Ireland. Short title, commencement and extent.

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ACT Unit: pag1

RA Proof 2.11.99

ELIZABETH II

c. 31

Contracts (Rights of Third Parties) Act 1999

1999 CHAPTER 31 An Act to make provision for the enforcement of contractual terms by third parties. [11th November 1999]

e it enacted by the Queen’s most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—

B

1.—(1) Subject to the provisions of this Act, a person who is not a party Right of third to a contract (a “third party”) may in his own right enforce a term of the party to enforce contractual term. contract if— (a) the contract expressly provides that he may, or (b) subject to subsection (2), the term purports to confer a benefit on him. (2) Subsection (1)(b) does not apply if on a proper construction of the contract it appears that the parties did not intend the term to be enforceable by the third party. (3) The third party must be expressly identified in the contract by name, as a member of a class or as answering a particular description but need not be in existence when the contract is entered into. (4) This section does not confer a right on a third party to enforce a term of a contract otherwise than subject to and in accordance with any other relevant terms of the contract. (5) For the purpose of exercising his right to...