Contract For The Benefit Of Third Party And Its Legislation Improvements

Countries have observed strictly the principle of privities of contract for a very long time, which has promoted process of the Contract Law. But as the developing of our society and expansion of the economic, carrying out the contract not only involves creditors and debtors, but also the third party. For example:insurance contracts and trust contracts broke the traditional principle of privities of contract, which more complying with the meaning of both sides of the contract, which made the trading more fair and safety. Breaking the traditional principle of contract means contract not only paying attention to the meaning of both sides of contract but also protecting the third party's benefit.Contract for the benefit of third party means both sides of the contract appoint that debtor giving benefit to the third party who has no connection with the contract, and the third party getting the right of asking debtor's giving directly. Contract for the benefit of third party is not a single type of contract, but a clause contains the third party's benefit in a contract. The emerging of contract for the benefit of the third party has a great significance. Due to the emergence of such contract, market transaction procedures has been greatly simplified, and making mutual negative debts the tripartite can one-time concise, which can make their claims played off at the same time. With the development of economy, this contract comes into your life more frequently, but our country does not have single detailed regulations in this area. There is only clause 64 in our Contract Law releasing about this. This results many troubles when there are breaches happening in this contract. This article is divided into four chapters. In the first chapter,I discuss conception, features, constitute and legal relationship of contract for the benefit of third party, we also make a comparison between contract for the benefit of third party and other similar legal relationship. We want to solve the following questions:the third party in the contract obtains the independent require right is necessary or not, the third party's will can or can't decide the effectiveness of the contract. In the discussion I also define the features of the third party clause in the divorce agreement. Part 2 mainly discuss the validity for three sides. During discussion we mainly solve following questions:the source of the requirement right of third party and the differences between this right and creditor's requirement right, the liniment of the creditor's right. Part 3 focuses on forms of responsibility of breach, and the remediation way when there is a breach. We also discuss the features of behaviors of the third party when he violates obligations, the consequences of the behavior. In the last part we discuss the legislation improvement. This part uses examples show inconvenience to trail practice because of our lacking clauses about contract for the benefit of the third party. Then draw the necessity of the contract for the benefit of the third party. At last we give some advice about how to improve our legislation about the contract for the benefit of the third party.