Third parties and third party rights
The law of contract dwells on certain principles that include “the privity of a contract,” which only binds the individual parties to a contract, among others. It also has other subsidiary provisions that provide for other persons affiliated to the contract. These persons are referred to as third parties, who can exercise certain rights provided in the contract and in the United States third parties Act that was introduced in 1999.
Third parties
Third parties in contracts are persons not privy in the creation of an agreement or a contract. Before the 1999s third party Act, they could not contest any dispute arising from a contract since to the “privity of contracts” principle that legally binds the individual parties to a contract. However, the introduction of the Act, gave third parties the right to enforce a contract although not directly affiliated to it and also safeguards their interests accrued, if any. The Act also provides that in instances of clear and concise requirements of a contract delegation. It provides that any beneficiary or counterpart has a right to control any aspect of the contract that he/ she feels has been incompetently done.
The fact that Sean and Chris are both fans of the Florida Seminoles gives Chris a third party to the contract made between Sean and Ronny, rights to sue Ronny for breach of the contract. This is since the third party Act gives equal rights to him as a third party as it would provide to Sean, who is privy to the contract. The fact that Ronny paints Sean’s house a hideous orange and blue that portrays Florida Gator colors breaches the terms of the contract and thus also gives Chris the right to enforce the actual terms of the contract as provided by Sean. The court’s ruling on the matter as enforced by Chris will offer the same remedy as if enforced by Sean, who was privy to the contract. Damages provided for breach of contract also apply as if requested by Sean, who was privy to the contract.
Third-party rights
The third-party Act of 1999 also provides for rights to enforce a contract for third parties who are not privy to the contracts or directly involved. The Act provides for specific conditions for which a third party can contest any contract. Third parties listed as intended beneficiaries in a contract are given priority right to challenge an existing contract. However, the beneficiaries have to meet specific criteria, which is, a direct affiliation which affects the privy parties, and that the contract’s performance directly affects any money or service they ought to receive. Nevertheless, contracts explaining openly third parties’ right to contest give a general right to the third parties to enforce the terms provided therein.
In the scenario, Bobby is an intended third-party beneficiary of the contract between Brenda and Walker Ford. She clearly and concisely gives directives of the delivery of the car to him and even pays $21,800 for it. She also calls Bobby to and confirms to him of the same before leaving for Mexico.
If Walker fails to deliver the car to Bobby, he has a right to sue for the breach of contract since him being an intended beneficiary gives him equal rights as those of Brenda, who is privy to the contract. The third-party Act provides that the court will treat the matter as if brought before it by the individual privy to the contract and would remedy it with equal measure and provide damages accordingly.