part. 2

Generally, a contract operates to confer rights and impose duties only

on the parties to the contract and no other parties. Third party have no rights, so they cannot enforce contractual provisions. [privity of contract]

third party beneficiary contract

is one which intends for someone who is not a party to that contract to benefit from the contract.

„privity of contract” refers

to the relationship which exists between the immediate parties to a contract.

exceptions of „privity of contract”

1) when the original contract provides for rights to be conferred on a third party 2) when contractual rights and duties are transferred to a third party at a later date

to confer rights

przyznanie praw

to impose duties

nakładanie obowiazków

third party beneficiary contracts

party A enters into a valid contract with party B which stipulates that party B shall render performance for the benefit of party C

be vested in

przysługuje

intended beneficiary

1) third party is identified in the contract, 2) the performance is made directly to the third party 3) the third party has some rights 4) there is some relationship between the promisee and the third party [thus entitled to enforce the contract]

incidental beneficiary

opposite to the intended beneficiary

if in the original contract the transferring party (A) is owed a right by the non transferring party (B)

the (A) is obligee and the (B) is the obligor

When it is not specified whether rights or duties are being transferred

the assignor is who attempts to transfer his rights/duties under the contract to a third party (assignee).

If a right is being transferred

, C (delegate) becomes the obligee in place of A (delegator)

to delegate

transfer of duties

novation

When the obligor discharge his duties, and the obligee must first release him from his obligations. When the obligor’s position is taken on by a new party.