The Contracts (Rights of Third Parties) Act 1999

摘要

The Act will generally apply to contracts which are 'entered into' after 11 May 2000. Construction contracts are no exception to this. Whilst the construction industry has been sceptical about the effects of the Act, I believe that the industry has nothing to fear from it. The Act can be used according to the parties' wishes -if no third-party rights are wanted, then the Act will respect that. The key to the Act is that it is down to the parties as to when and how third-party rights will apply in their contracts. In my view, the Act should have unwelcome consequences only where parties have failed to address the issue of third-party rights in their contracts. Where this is the case, it is quite conceivable that third parties will acquire rights and, as a result, the contracting parties may acquire additional liabilities. Also, where unintended rights are granted, the impact on the parties' ability to vary or rescind their contract should also not be underestimated. Beyond this, I suggest that the Act is a very positive development and offers opportunities to improve the way in which construction contracts and consultancy appointments are structured. As a result, I believe that the Act should be welcomed.