Third Party Rights Clause

In some jurisdictions, the law allows that third parties may acquire rights under a contract. This may be the case even in common law jurisdictions (such as the UK) that adhere to the doctrine of privity of contract.

A third party rights clause may be used to prevent or try to prevent third parties gaining rights under a contract. For example:

This Agreement is made for the benefit of the parties, and is not intended to benefit any third party or be enforceable by any third party. The rights of the parties to terminate, rescind, or agree any amendment, waiver, variation or settlement under or relating to this Agreement are not subject to the consent of any third party.

Other types of third party rights clauses may specify the third parties that may gain rights under a contract and/or the types of contractual rights that third parties may gain.

Reference Contractology

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