Discussion On The Contract Of Beneficial Third Party

Social structure has become more huge and complicated as the change of tradepattern in recent years since 19th century. Intensified monopolization and issues onprotection to the weak group, consumers and labors for instance, emerges gradually.Changes and development in social economy has led the core content changes onmodern contract laws, further strengthening the request for trading security andprotection on justice. The contract of beneficial third party is one important institutionin performing the core function and assignment of modern contract law. Consideringthe importance of the contract of beneficial third party, this article will mainly focuson discussing whether the contract of beneficial third party is stipulated on List 64thin Contract Law of the People's Republic Country of China, through analyzing thedefinition and feature of the contract of beneficial third party.Introducing the historical progress, cause of appearance and the development ofthe contract of beneficial third party;the article identifies the legal feature and statusof the contract through analyzing the relation between the contract and the principleof private of contract. The import role of the contract is then rightly manifested byanalysis on its social function. In addition, the elements of the contract and its legalforce reflect the contract's legal function and working process in social reality.Firstly, starting from the definition interpretation to the literature content inexplaining the List 64th in Contract Law of the People's Republic Country of China,this article deems the List cover two completely different categories of contracts--the contract of beneficial third party and the contract of authorizing the third party,The wrong coverage makes the List 64th become a legal defect. To revise such defect,the List should narrow its interpretation focus. To make it more specifically from areality aspect, the List must have specification on legal fact about the contract ofbeneficial third party, instead of excluding this contract out of consideration.Secondly, through reviewing historical factors, if the List is explained as the contractof beneficial third party, it will not fall out of the lawmakers' expectation, that is, itwill not be against the lawmakers' intent in law stipulation. Thirdly, reviewing fromthe affiliation of the List 64th and the List 65th, and the status of List 64th in the overallsystem of the Contract Law, the List will be more properly to be explained as thecontract of beneficial third party. Finally, through the comparison to legal necessitiesfor the two categories of contracts, meanwhile illustrating that it is illogic to explainthe List as other category of regulations, the conclusion is drawn that the List 64th inContract Law of the People's Republic Country of China should be explained as theregulation of the contract of beneficial third party.