Altruistic Contracts

According to the traditional civil law, as one source of debt, contract is fixed on the parties's credit so that it takes effect only between the parties. The third party cannot enforce the contract and is not obliged by the contract duty. This is called the privity of contract. Even if the parties want to vest rights into a third party, the third party have no chance of enjoying these rights. And the parties can vary the third party clause at any time to alter or extinguish the third parties' rights. In other words, in the third party beneficiary contract, the third party is only taken as an outsider, even if the third party is closely linked with the formation, variation and termination of the contract. This turns out to be unreasonable. With the growth of society, it becomes hard to balance the interests of the society if the privity of contract is still taken as forbidden orthodox. To satisfy the judicial justice, the concept of third party contract comes into being. The third party beneficiary contract is so unique that it poses a challenge to the privity of contract. In this thesis, the author not only talks about the basic knowledge of third party beneficiary contract but also provides some of his own opinions. The thesis is divided into five sections:As center of this thesis, the first section mainly introduces the various theories on third party beneficiary contract. This section analyzes four points: concept, components, effects and distinctions with other related concepts (systems) . Firstly, in the analysis of concept, the author confines both the concept and legal relationship. Secondly, in the analysis of components, three points are talked about: a valid contract between the promisee and promisor; with the intention of benefiting third party; the third party's enforcement of the contract. Thirdly, in the analysis of effect, the author talks about the effects respectively from the viewpoints of promisor, promisee and the third party. From the viewpoint of the third party, the author analyzes the third party's communication,enforcement and defences. From the viewpoints of the parties, the author analyzes the promisee's enforcement, the promisor's duty, the promisor's defences, and the parties' variation and rescinsion. Fourthly, in the distinction with related concepts, the concept of third party beneficiary contract is compared respectively with the "implied warranty" in American law, the "contract with the function of protecting third party" in German law and rights assignment.The second section mainly introduces the comparative study. In this section, the author talks about the legislations respectively in Britain, America, France, Germany and Taiwan Area. Through the comparative study, it turns out to be clear that our legislation has caused many obstacles due to its inconsistency with the other countries.The third section talks about the rationale of third party beneficiary contract. Three points are mentioned here: the rationale of privity of contract, the rationale of third party beneficiary contract and the functions and value of third party beneficiary contract. Firstly, in the analysis of the rationale of privity of contract, the author talks about the meaning and significance of third party beneficiary contract. And the author affirms the privity of contract is the foundation of the rules and systems of contract law. Secondly, in the analysis of the rationale of third party beneficiary contract, the author introduces five related theories: assignment theory, agency theory, altruistic intermeddling theory, promise theory, and rights-oriented theory. The author holds that the essence of third party beneficiary contract cannot be found if it is seeked solely in the reach of law. And the significance of third party beneficiary contract should be probed from the viewpoint of economy. The law shouldn't be taken as an isolated system and it should be linked with other social phenomenons. The function of law should be tested in social practices and the traditional concept must be broken do...