The question as to whether a third party can be granted rights or protection based on a contract between two other parties to which the third party is a mere stranger is as old as the legal scholarship of contract law itself. Over centuries, quite different approaches to the issue have been evolved and embedded in different legal systems, each with its own characteristics and features. This essay intents primarily to analyse and compare the approaches of English1 and German Law to third party rights arising from bilateral contracts, particularly with regard to contracts for the benefit of a third party and the new Contracts (Rights of Third Parties) Act 1999. However, despite this main focus, some other features related to third party involvement in mutual contracts will be considered too. In the first and the second part of this essay I will describe the modus operandi of English and German law with regard to third party rights and highlight differences and similarities. The third part of this paper concerns the approach of that what is sometimes called an international restatement of contract law, namely the UNIDROIT Principles of International Commercial Contracts,2 to the rights of third parties. A comparison of the English and German system with the restatement will illustrate to what extent elements of these two national legal systems have been implemented and considered in an international project of unification of law.
Table of Contents
- INTRODUCTION
- A. THIRD PARTY RIGHTS IN ENGLISH LAW
- I. The Doctrine of Privity
- 1. Development
- 2. Reasons for the Privity Rule
- 3. Exceptions to the Doctrine
- II. The Contract (Rights of Third Parties) Act 1999
- B. THE APPROACH TO THIRD PARTY RIGHTS IN GERMAN LAW
- I. Historical Outline
- II. Promise of Performance for the Benefit of a Third Party
- III. The Interrelationship of Contract and Tort
- C. THIRD PARTY RIGHTS IN THE UNIDROIT PRINCIPLES
- I. Introductory Remarks
- II. The Draft UNIDROIT Provisions on Third Party Rights
- III. Exemption Clauses for the Benefit of Third Parties
- CONCLUSION
Objectives and Key Themes
This essay aims to provide a comparative analysis of third party rights in English and German law, with specific reference to the UNIDROIT Principles on International Commercial Contracts. The essay explores the development and current state of the law in both jurisdictions, highlighting key differences and similarities.
- The doctrine of privity in English law and its historical development
- The reform of the privity rule by the Contracts (Rights of Third Parties) Act 1999
- The German legal framework for third party rights, including the concept of Drittschadensliquidation
- The UNIDROIT Principles on International Commercial Contracts and their approach to third party rights
- The comparative analysis of third party rights in English, German, and UNIDROIT law
Chapter Summaries
The introductory chapter sets the stage for the comparative analysis by providing a brief overview of the concept of third party rights and its relevance in international commercial contracts. Chapter A explores the doctrine of privity in English law, outlining its historical development, reasons for its existence, and the exceptions that have evolved over time. It also delves into the Contract (Rights of Third Parties) Act 1999 and its impact on the privity rule. Chapter B examines the approach to third party rights in German law, tracing its historical roots and highlighting the unique legal principles involved, such as the promise of performance for the benefit of a third party and the interrelationship between contract and tort. Chapter C focuses on the UNIDROIT Principles on International Commercial Contracts, discussing their general provisions on third party rights and examining specific provisions related to exemption clauses for the benefit of third parties.
Keywords
Key terms and concepts central to the essay include: third party rights, privity of contract, Contract (Rights of Third Parties) Act 1999, German Civil Code, Drittschadensliquidation, UNIDROIT Principles on International Commercial Contracts, comparative law.
- Quote paper
- Rechtsanwalt Karsten Keilhack (Author), 2003, Third Party Rights: A Comparison of English and German Law with Respect to the UNIDROIT Principles on International Commercial Contracts, Munich, GRIN Verlag, https://www.grin.com/document/22898
