Study Of Law Rules And Regulations About The Third Party Beneficiary Contract

As one of the basic principles of traditional contract law, the principle of contract relativity is changing worldwide, no matter in Continental Law System or in Ordinary Law System, with the development of social economy. Since the third party beneficiary contract and the corresponding theory appeared, the principle of contract relativity has not been unique.The third party beneficiary contract or the contract signed by the third party beneficiary, means that the agent concerned sets contract right for the third party so that the later can gain benefits. Article 64 of Contract Law of the PRC includes some limited contents about the third party, which is just the change on contract performing method without endowing the third party with plea right. In fact, the kernel of the third party beneficiary contract lies in the performance of plea right by the beneficiary third party. Therefore, we can say this article is not for the third party beneficiary contract. The third party in this kind of contract is not the agent concerned, but the beneficiary of this contract. The right of the third party beneficiary is produced along with the signing of contract and confirmed by the acceptance of the third party. The break-through of the principle of contract relativity is enlightening the construction of Chinese Contract Law.According to Chinese national situation, the construction of the system of the third party beneficiary contract is the results of the development of social practice, which would meet the diversified needs of the modern commodities trading, help the individual complete the deal quickly ,streamline procedures and help promote socio-economic development. It can help to reduce the compliance costs of trading and avoid the repetition of the commercial operation. Therefore, the traditional law should maintain an open concept system to permit the legitimate existence of the third party beneficiary contract, to improve the regulatory function of contract law system and to achieve the maximum efficiency of benefit.