The Interests Of A Third Party Contract Research

Privity of contract resulted from the parties of contract at the beginning of contract. Privity of contract shows that the effect of contract only involves the parties of the contract not the third party who has no concerns with the contract. On the grounds of strict privity, the contract freedom and autonomy of will of ancient contract theory have been recognized and respected widely, and have been regarded as the fundmental principle. But as the time passed by, especially in the 20th century, the relative and successive transaction substituted the closed and the independence in transaction. Privity of contract doesn't meet the demands of the safety in transaction and the balance benefit. So the exception of privity of contract comes into being in society. The contracts for the benefit of the third party has been accepted by all countries. The thesis expounds the origin, function, legal component, legal relationship, legal effect etc. And the thesis does some remarks on the Chinese current legislation and gives some suggestions on legislation of the contracts for the benefit of the third party.This paper consists of four parts:Part I : Privity of contract. First the author explains the meaning of contract and privity of contract. Civil law system countries and common law system countries have different explanation. Then the author introduces the establishment of privity of contract in the two systems. But with the development of the economy, all countries gradually accepted the exception of privity of contract.Part II: The breakthrough about the contracts for the benefit of third party to the privity of contract. The author compares the contracts for the benefit of third party in some countries. The contracts for the benefit of third party exists in all fields. Civil law system and common law system have different ideas about the reasons for the acceptance of the contracts for the benefit of the third party. Then author sets forth the reasons for acceptance.Part III: The analysis on the contracts for the benefit of the third party in terms of jurisprudence. Firstly, the thesis introduces the conception and function. It means that the parties of the contract agrees that one of them will perform the debt to the third party. The contracts for the benefit of the third party has the function of facilitating the economic circulating costs, decreasing the economic burden and saving the social production costs. The thesis compares the conception of the contracts for the benefit of the third party with the trust, the insurance, the third party benefit of warranties. Then the thesis analyses legal components of the contracts for the benefit of the third party and relationships which the contracts for the benefit of the third party involved. The legal effect to the third party includes the right to ask the debtors performing their duty to the third party; the right to resist the parties' altering or discharging the contract; the right to ask authority to executing the debtors' duty; the right of arbitration. The legal effect to the creditors includes the right to ask the debtors performing their duty; the right to demand compensation. The legal effect to the debtors includes the duty of performing the debt to the third party; the right to resist the creditors and the third party; the legal right of discharging the contract.Part IV: The current situation of the contracts for the benefit of the third party and legislation suggestion. In China, the contracts for the benefit of the third party is not admitted in legislation. The author advises that we should use the experiences of the other countries for reference in legislation and set up reasonable suggestions.