Third Party Beneficiary Contracts System

The doctrine of privities means that contract relation only restrains contract parties. Anybody, who is not a contract party, neither enjoys contract rights, nor bears contract obligations. The contract for the benefit of third party is an exception of the doctrine of privities, which gives third party the right to enjoy contract rights. Nowadays, the contract for the benefit of third party has been established by the legislations and legal precedents of many countries and districts in the world. The contract for the benefit of third party is extensively applied in social economic exchange. This contract has some unique values: the third party has the right to directly acquire performance. It can shorten the process of performance, save the transaction cost, safeguard the reliance benefit of third party and contribute to realize the special purpose of the parties.The contract for the benefit of third party is not a particular type of contract, but it is a common contract, which contains the terms of the benefit for third party. From the view of third party, it is named the contract for the benefit of third party. But the parties of the contract for the benefit of third party yet are promisor and promisee, the third party is not the contract party. So it is not necessary for third party to have capacity to contract, to make acceptance, even to know it, when the contract is made. But the third party must be determined when the contract is performed. The contract for the benefit of third party may include condition and period, but according to thespirit of the contract, third party can not bear any obligations.The effect of the contract for the benefit of third party has specialties. Once third party accepts the rights given by the contract, the rights will be definite inviolable and limit the parties rights. The parties have no right to change or revoke the contract ,if third party does not agree. Once third party refuses the rights, then the rights will be originally non-existing. Third party has the rights to directly acquire debtor performance to him, because he enjoys the creditor's rights, but some belonging to the parties rights, for example, changing or revoking the contract, third party can't enjoythem. The third party rights depend on the validity of the contract for making these rights. If the contract is valid, invalid or unenforceable, the third party's rights will be also similarly affected. Creditor should acquire debtor to perform liabilities to third party, not to himself. Debtor must perform bis liabilities to third party according to the contract, or else he should bear the liability of the breach, but debtor can protest all demurs ,being against the creditor in the light of the contract, to third party.