Legal: A boost for third-party rights

By Joe Bennett 2019-06-10T05:00:00

The Court of Appeal has confirmed a robust approach to third-party rights in contracts

The Court of Appeal has recently upheld a Commercial Court decision lending support to a robust application of the Contracts (Rights of Third Parties Act) 1999. The court’s decision is likely to give further encouragement to the use of third-party rights in the construction industry and beyond. By adopting a broad view of what is necessary to identify a class of beneficiaries for the purpose of the rights of third parties act, this may also pave the way for greater use of automatic vesting mechanisms. This might allow for consequent savings in time and cost for purchasers, but is a reminder to suppliers to stay vigilant as to parties that might be able to enforce rights in their contracts.

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