Contracts
(Rights of Third Parties) Act 1999
by
Roderick Ramage, solicitor, www.law-office.co.uk
first
published in New Law Journal (newlaw.journal@butterworths.co.uk) on 14 April
2000
DISCLAIMER
This article is not advice to any person
and may not be taken as a definitive statement of the law in general or in any
particular case. The author does not accept any responsibility for anything
that any person does or does not do as a result of reading it.
This Act received Royal Assent on 11 November 1999 and will apply to
all contracts made on or after 11 May 2000, but the parties to contracts can
provide for its application before that date in respect of contracts made after
Royal Assent. The Act is not a
wholesale abrogation of the principle of privity of contract, but leaves
contracting parties with a substantial degree of control over the extent to
which third parties may acquire rights under their contracts.
The following is a collection of boilerplate clauses to deal with the
options available to contracting parties under this Act. I include definitions on one introductory
clause for convenience in this precedent, but in practice users may find it
easier to incorporate any necessary definitions in the clauses selected for
use.
|
"the Act" |
means the Contracts (Rights of Third Parties)Act 1999. |
|
"Third Party" (alternatives) |
has the meaning given to it by the Act. means any person who is not a party to the Contract. means any person except the [Party-A]
and the [Party-B]. means [name]. means any person who as a private retail buyer or consumer after (date) buys any [Product] from the [Party-B]. means any person to whom [Party-B]
conveys the Property and the successors in title to any such person. |
|
"Contract " |
means a contract made on [date]
between [Party-A] and [Party-B]. for the purpose of [description]. |
|
"Variation" |
means the deletion of clause x of the Contract [and the substitution
for it of the new clause set out in the schedule to this agreement]. |
x The parties intend that
this agreement may be enforced by a Third Party pursuant to s1(1)(a) of the
Act.
x The parties intend that
this agreement [except clauses a, m and x (or)
the provisions contained in schedule Y] may be enforced by a Third Party
pursuant to s1(1)(a) of the Act.
x The parties intend that
[clauses a, m and x (or) the
provisions contained in schedule Y] of this agreement may be enforced by a
Third Party pursuant to s1(1)(a) of the Act.
x Pursuant to s1(2)(a) of
the Act the parties intend that no term of this agreement may be enforced by a
Third Party.
x Pursuant to s1(2)(a) of
the Act the parties intend that no term of this agreement except clauses [a, m
and x (or) the provisions contained
in schedule Y] may be enforced by a Third Party.
x I am a "third
party" to the Contract and pursuant to s2(1) of the Act assent to the
Variation.
x I am a "third
party" to the Contract and assent pursuant to s2(1)(a) of the Act to the
Contract.
x The circumstances under
which pursuant to s2(2)(b) of the Act the consent of a Third Party to a
rescission or variation of the contract made by this agreement are [set out in
schedule Y to this agreement (or) as
follow.]
[list of circumstances]
x The parties reserve the
right pursuant to s 2(3)(a) of the Act to rescind or vary the contract made by
this agreement without the consent of a Third Party.
x Pursuant to s2(5) of the
Act there shall not be available to [Party-A]
by way of defence, setoff or counterclaim in proceedings brought by a Third
Party any matter [particulars].
x The [Party-A] reserves the right pursuant to
s3(3) of the Act to have available to him by way of defence or setoff in
proceedings brought by a Third Party any matter [particulars].
x Notwithstanding s10(2)
of the Act the parties agree pursuant to s10(3)(b) that the Act shall apply to
the contract made by this agreement.
copyright Roderick Ramage
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