Contracts Rights of Third Parties

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Contracts Rights of Third Parties




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Contracts Rights of Third Parties

There are many reasons as to why the law restricts the contracts rights. To start with, the contract between two or more people causes harm to the individual in that the interests of the people involved are greatly affected. This is the privity of the contract whereby the third party is not allowed to sue or the partners involved sue him or her even when she or he was enjoying the benefits of the business. This rule restricts an individual from the right of freedom whereby he or she respects the obligation in order to protect their future. In addition, the law provides strict adherence to the privity rule that the third party should not be sued. It is clear that if the third party would be included in the contracts it will create unnecessary series in the contract which will make the issues complex. The contract should be between two parties to avoid the series of claims (Macneil, 2007).

Additionally, identification is very important in a contract in that for the third party to be inclusive, the contract should have more details concerning the third party. Identification of the third party may be details of registration or membership. The third party should be liable of the interests whereby they should be part of the class. The third parties should also be able to fulfill the conditions which are set by the contracting parties. The conditions are for the protection of the interest whereby the third party should be part of it. On the other hand, the law has greatly limited the third party right because the third party is not involved when the contract is being made. The existence of the third party is limited whereby they can fail to fulfill the conditions (Edelman, Erlanger & Lande, 2009).

Conclusively, the third party should be identified in order to understand the people working with to avoid issues that may arise. There should be set intention which should confer the third party on the contract. This is helpful in keeping the conditions of the contracts including the interests. The obligations should be kept between the contracting parties whereby if any issue arises they can be able to sort out without including the third party to avoid series of claims (Macneil, 2007).


Macneil, I. R. (2007). Contracts: adjustment of long-term economic relations under classical, neoclassical, and relational contract law. Nw. UL Rev., 72, 854.

Edelman, L. B., Erlanger, H. S., & Lande, J. (2009). Internal dispute resolution: The transformation of civil rights in the workplace. Law and Society Review, 497-534.

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