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Altered sue rule faces the critics

By: Series: Building Trade and Industry ; 16(6) June 2000, 7(1)Publication details: 2000Subject(s): Summary: Explains the background to the Contracts (Rights of Third Parties) Act 1999, which says that a third party may enforce a term of a contract in his own right where the contract expressly provides, and where 'the term purports to confer a benefit on him'. Identifies weaknesses in the Act, suggesting that although it protects against parties having to pay twice for the same liability, there is a risk of being sued twice. This may undermine the whole purpose of the Act.

Explains the background to the Contracts (Rights of Third Parties) Act 1999, which says that a third party may enforce a term of a contract in his own right where the contract expressly provides, and where 'the term purports to confer a benefit on him'. Identifies weaknesses in the Act, suggesting that although it protects against parties having to pay twice for the same liability, there is a risk of being sued twice. This may undermine the whole purpose of the Act.