Research on the Contract for the Benefit of Third Parties

Abstract

The relativity of contract has been one of the most important basic principles in the contract law. With the development of social economy, however, the relativity of contract is facing more and more challenges—the complexity of business transactions makes the execution of many contracts related to the third parties, and trying to use contracts to benefit the third parties has become especially common. In that case, several questions are aroused in theory such as whether the contract for the benefit of third parties is rational, and how to build the institution of the contract for the benefit of third parties and so on. Given this situation, this paper explained the rationality and legitimacy of the contract for the benefit of third parties. After comparing the legislative examples in many countries, the paper tried to establish the right system related to the contract for the benefit of third parties, and provided advice on Article 64 of Chinese Contract Law.