Contract For The Benefit Of The Third Party

Traditional civil law theory considers a contract has only relative effect, rights and obligations of which only happens between the two parties, and the third party who neither enjoys rights nor shoulders obligations shall not participate in.Since 20th century, with the complication of trade relationships, especially with the rapid development of insurance, entrust and transport, all nations justify the contract for the benefit of the third party one after another to meet the needs of balancing societies' interests and fulfilling societies' fairness.However, most scholars in the academy consider contract for the benefit of the third part as an example to breach the relative theory of contracts. I think there is something wrong with the statement and try to conclude that contract for the benefit of the third party is none the less on the basis of contract relative theory and in accordance with general principles of civil law through two kinds of legal analysis.The essay includes 8 parts, as follows:Part 1 is introduction. This part generalizes social background of contract for the benefit of the third party ' s and scholars' research into this theory in order to give a brief introduction of the whole essay.Part 2 is general introduction of the contract for the benefit of the third party , including 4 points. Point 1 introduces the definition and characters of contract for the benefit of the third party , redefines the connotations of about contract for the benefit of the third party and points out that contract for the benefit of the third party must consist of "the third party interests terms" of rights to petition endowed by the debtor to the third party as well as agreements to pay the third party made by the debtor with debtee. Point 2 introduces the categories of the contract for the benefit of the third party in British and American systems to help us make out relationships between 3 parties in the contract for the benefit of the third party. Section 3 demonstrates general characters of contract for the benefit of the third party and Section 4 points out the necessity to define contract for the benefit of the third party from its social functions.Part 3 introduces legislation examples of contract for the benefit of the third party, makes comparative research into legislation of the two law systems ' typical contract for the benefit of the third party and points out the necessity and urgency to define general principles of contract for the benefit of the third party in China.Part 4 mainly demonstrates academic background of contract for the benefit of the third party, which is the masterstroke and core of the whole essay. Through in depth analysis of all views on academic background of contract for the benefit of the third party, I conclude that the views made by the academia are not compatible with legal principles and can not explain why the third party shall get rights to petition on the basis of contract for the benefit of the third party. In this part I am to sort the contract for the benefit of the third party into legal and contractual kinds and explain the basis of rights to petition by using the suppose-promise theory and then get a conclusion that the contract for the benefit of the third party is none the less compatible with contract relative theory, policies of which will not change the foundation of civil law.Part 5 introduces factors of forming contract for the benefit of the third party and analysis of related policies. This part points out that, to build a complete contract for the benefit of the third party and take effect of getting rights to petition by the third party, general factors to justify a contract are needed and the debtor must specially indicate to endow the third party rights to petition. Combining this point, I differ contract for the benefit of the third party from terms such as paying according to directions.Part 6 introduces questions about effect of contract for the benefit of the third party, demonstrating effects of contract for the benefit of the third party to the debtee, to the debtor and to the third party respectively, and focusing on rights to petition of the third party and of rights to defense of the debtor.Part 7 is about my assumption of forming a contract for the benefit of the third party in China. Through research into the present legislation state of contract for the benefit of the third party in China, I propose detailed solutions to define contract for the benefit of the third party in the contract law in the future.Part 8 is conclusion.