The Restriction On The Right Of Promisee Of The Contract For The Benefit Of Third Party

With the increasing of the openness, continuity and mutual dependence oftransactions, pivity of contract confronts more and more challenges. There are manyexceptions of application of privity of contract, for example assignment of creditor’sright, assumption of debt, trust and so on. Absolutely, the contract for the benefit ofthird party is one of them. The entering of the beneficiary restricts the exercise ofpromisee rights. The essay focuses on the restriction on the right of promisee of thecontract from historical and comparative analysis perspective. Firstly, a briefintroduction of the restriction on the right of promisee is given. Secondly, therestriction on the right of claim of promisee is analyzed. Thirdly, the restriction on theright of alternating the contract of promisee is studied. Finally, actuality andimprovement of legalization of the restriction on the right of promisee is expounded.The first chapter summarizes the restriction on the right of promisee. To startwith, in the process of introducing the establishment of privity of contract and thecontract for the benefit of third party in Anglo-American law system and Continentallaw system, the nature and significance of the contract for the benefit of third partyand the development process of the restriction on the right of promisee are identified.As a result, the relationship between the contract for the benefit of third party andprivity of contract is defined as breakthrough. In the next place, the foundation and the principle of the restriction on the right of promisee will be analyzed. Thefoundation includes self-discipline factor and external origin factor.The second chapter researches the restriction on the right of claim of promisee.Not only the division between contracting party and creditor, but also thesubordination of the right of promisee result in the restriction on the right of claim ofpromisee. Promisee can only ask promisor to perform his obligation to beneficiary. Asto the restriction on the right to claim damage, promisee can’t propose compensationabout the damage of beneficiary, unless he has paid or will transfer the compensationto beneficiary.The third chapter studies the restriction on the right of alternating contract ofpromisee. The determination of the beneficiary right decides the consideration factorfor the restriction. The protection of the reliance interest and expectation interest ofthe beneficiary is the basics of restriction. The restriction on the right of changing orwithdrawing the item for the beneficiary of third party and the whole contract isexpounded with comparative analysis method. In short, unless the contract hasreserved conditions of alternation and recession, parties can’t negotiate to change orwithdraw the contract if beneficiary has accepted the interests. If beneficiary haschanged his status because of reliance on the contract, the same effect will be led.The fourth chapter comments on the actuality of legalization of the restriction onthe right of promise. There aren’t general regulations about the contract for the benefitof third party and the restriction on the right of promisee. However, specificprovisions are given, for example, insurance contract, freightage contract and trustcontract. As to the freightage contract, the right of consignor should be restrictedaccording to the different nature of the relationship between promisee and beneficiary.