Contracts Rights of Third Parties) Act.docVIP

Contracts (Rights of Third Parties) Act (CHAPTER 53B) (Original Enactment: Act 39 of 2001) REVISED EDITION 2002 (31st July 2002) An Act to make provision for the enforcement of contractual terms by third parties. [1st January 2002] Short title and application 1. —(1)??This Act may be cited as the Contracts (Rights of Third Parties) Act. (2)??Subject to subsection?(3), this Act shall not apply in relation to a contract entered into before the end of the period of 6 months from 1st January 2002. (3)??The restriction in subsection?(2) shall not apply in relation to a contract which?— (a) is entered into on or after 1st January 2002; and (b) expressly provides for the application of this Act. Right of third party to enforce contractual term 2. —(1)??Subject to the provisions of this Act, a person who is not a party to a contract (referred to in this Act as a third party) may, in his own right, enforce a term of the 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) shall 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 shall 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 shall 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 enforce a term of the contract, there shall be available to the third party any remedy that would have been available to him in an action for breach of contract if he had been a party to the contract (and the rules relating to damages, injunctions, specific performance and other remedy shall apply accordingly) and