Contracts for the Benefit of Third Parties Under the Taiwan Civil Code

Author(s):  
Sheng-Lin JAN

This chapter discusses the position of third party beneficiaries in Taiwan law where the principle of privity of contract is well established. Article 269 of the Taiwan Civil Code confers a right on the third party to sue for performance as long as the parties have at least impliedly agreed. This should be distinguished from a ‘spurious contract’ for the benefit of third parties where there is no agreement to permit the third party to claim. Both the aggrieved party and the third party beneficiary can sue on the contract, but only for its own loss. The debtor can only set off on a counterclaim arising from its legal relationship with the third party. Where the third party coerces the debtor into the contract, the contract can be avoided, but where the third party induces the debtor to contract with the creditor by misrepresentation, the debtor can only avoid the contract if the creditor knows or ought to have known of the misrepresentation.

2017 ◽  
Vol 7 (1) ◽  
pp. 23
Author(s):  
Zuzanna Służewska

Si tamen plures per se navem exerceant. Several Remarks on the Liability of ShipownersSummaryThe problem discussed in this paper regards the liability of several shipowners (exercitores) managing the same ship. In the title de exercitoria actione o f the Digest there are three texts that refer to this matter: D. 14,1,1,25; D. 14,1,4 pr. and D. 14,1,4,1. The first and the last one refer to a situation in which the shipowners appointed a captain (magister navis) as their agent and thus were held liable in solidum for contracts made by him with third parties. In these cases their joint and several liability had ground in the joint appointm ent of an agent (praepositio). The second text D. 14,1,4 pr. is not very clear and refers to shipowners that were managing the same ship per se, and in this case they could be sued pro portionibus exercitionis. Such a model of liability was justified by the reservation that they cannot be deemed as being each other’s captain (neque enim invicem sui magistri videbuntur). This text was widely discussed among romanists and gave ground to various interpretations. The main questions concerned were the following: whether shipowners dealt with the third parties personally or appointed an agent (magister navis), whether a contract was stipulated by all shipowners jointly or only one o f them, whether they were partners in a partnership or conducted their business independently. According to the most common interpretation the text refers to a situation in which the shipowners conducted their activity personally in the partnership. Having accepted the above view, to justify their liability pro portionibus exercitionis one must admit that they all acted as a party in a contract or, supposing a contract was stipulated by one of them, a partnership between shipowners was a particular kind of partnership in which a contract concluded by only one of the partners resulted in the liability of the others. N one of these interpretations seems to be convincing.First of all, one must take into consideration that the word exercitor was a technical term used to define someone conducting an economic activity through his agent (magister navis) so it was normally used in the context of the whole structure of exercitio navis that was based on the scheme exercitor — magister navis. Thus it seems more likely that exercere per se means not conducting an activity personally but rather „on one’s own account”, „independently”. Besides, the reservation neque enim invicem sui magistri videbuntur suggesting that plures exercitores conducted their activity personally is dubious since it refers to a concept of mutual praepositio, which was used by glossators and commentators to justify joint and several liability of partners and it may be possible that this reservation constituted a part of the gloss or was added to the original context later by some interpreter that did not understand Ulpian’s intention.A similar conclusion arises from the comparison of the text of D. 14,1,4 pr. with texts concerning the liability of several persons on the basis of actio institoria. From the text of D. 14,3,14 it appears that if no legal relationship that guaranteed the possibility of a recourse existed among several persons liable for the act of the agent, none o f them could be sued for the full am ount (in solidum) but they were held liable pro parte. In the case of actio institoria the fact of a joint appointm ent was probably treated as a manifestation of animus societatis that made it possible to treat the persons that had nom inated jointly the institor as partners and thus held them liable in solidum for contracts made by this agent. Hence the fact that in the text o f D. 14,1,4 pr. the shipowners did not appoint jointly their agent and were held liable pro portionibus exercitionis suggests that they were not partners but each of them managed a ship on his own account.If we adm it that plures exercitores that per se navem exerceant were the shipowners that did not conduct their business together we could indicate two situations in which they could be sued pro portionibus exercitionis. The first would be the case in which each o f the shipowners appointed his own agent on the ship and the contract with the third party was stipulated by all agents acting together. The second would be the case in which the shipowners appointed the same person as their agent but the praepositio was given by each o f them separately. in both cases each o f the shipowners could be sued with actio exercitoria only for his proper part since they could not be deemed to be partners and they could not sue each other with any action for a recourse.


Author(s):  
ONG Burton

Singapore’s contract law framework, in the context of third party beneficiaries, has stayed faithful to the approach taken under English law. The common law in Singapore has adopted the privity of contract rule, various common law exceptions to the rule, and a statutory regime to empower third parties to enforce contractual terms in prescribed circumstances. The privity rule confines the benefits and burdens under a contract to the contract parties; only they have given consideration and only they can sue and be sued under it. However, various reasons support the third party beneficiary having some right to enforce that benefit and a range of common law mechanisms have been recognized by the courts to allow the third party to do this. Some are true exceptions, others operate by recharacterizing the status of the third party into that of a primary party, thereby eliminating the lack of privity. In cases where the third party may potentially be able to sue the promisor in tort, the basis for loosening the privity doctrine to permit the third party to sue the promisor in contract, and the character of the damages recoverable from the party in breach, requires closer scrutiny.


Author(s):  
Ly Tayseng

This chapter gives an overview of the law on contract formation and third party beneficiaries in Cambodia. Much of the discussion is tentative since the new Cambodian Civil Code only entered into force from 21 December 2011 and there is little case law and academic writing fleshing out its provisions. The Code owes much to the Japanese Civil Code of 1898 and, like the latter, does not have a requirement of consideration and seldom imposes formal requirements but there are a few statutory exceptions from the principle of freedom from form. For a binding contract, the agreement of the parties is required and the offer must be made with the intention to create a legally binding obligation and becomes effective once it reaches the offeree. The new Code explicitly provides that the parties to the contract may agree to confer a right arising under the contract upon a third party. This right accrues directly from their agreement; it is not required that the third party declare its intention to accept the right.


2014 ◽  
Vol 14 (3) ◽  
Author(s):  
Elfrida R Gultom

The objective of Busway development is to provide transportation services faster, safer, comfortable, and affordable for people in Jakarta. Ticket prices are subsidized by the local government busway. Busway given special line, however could not be separated from the accident. In a carriage, in the event of an accident then apply provisions of Law No. 22 of 2009 on Traffic and Transportation. If there is a loss that hit the third party then setting responsibilities Public Service Agency TransJakarta Busway to third parties refer to the provisions of Article 194 paragraph (1) which determines that the public transport companies are not responsible for any losses suffered by third parties, unless the third party may prove that the loss is caused by the fault of public transport company. Under these provisions, if the third party wants to sue for damages, ketigalah party must prove the fault of the carrier, the claim is based on the basis of tort or on the basis of error set forth in Article 1365 of the Civil Code which stipulates that any action unlawfully harming others, require the person who carries the loss offset. Keywords: transport, the responsibility of the carrier, a third party, transport law


2021 ◽  
pp. 307-358
Author(s):  
Robert Merkin ◽  
Séverine Saintier

Poole’s Casebook on Contract Law provides a comprehensive selection of case law that addresses all aspects of the subject encountered on undergraduate courses. This chapter examines privity of contract, its relationship with consideration, and the ability of third parties to enforce contractual provisions for their benefit. The doctrine of privity of contract provides that the benefits of a contract can be enjoyed only by the parties to that contract and only parties can suffer the burdens of the contract. At common law, third party beneficiaries could not enforce a contractual provision in their favour so various devices were employed seeking to avoid privity. Statute now allows for direct third party enforcement but in limited circumstances. This chapter examines the background to privity and the attempted statutory reform in the Contracts (Rights of Third Parties) Act 1999 as it has been interpreted in the case law. The chapter also discusses the common law means of avoiding privity as illustrated by the case law, e.g. agency, collateral contracts, and trusts of contractual obligations. Finally, it assesses the remedies available to the contracting party to recover on behalf of the third party beneficiary of the promise, including the narrow and broad grounds in Linden Gardens Trust. It concludes by briefly considering privity and burdens—and the exceptional situations where a burden can be imposed on a person who is not a party to the contract.


Author(s):  
Robert Pearce ◽  
Warren Barr

This chapter considers remedies involving a breach of trust which involves a third party who was not a trustee either as a participant in the breach or as the recipient of trust property transferred to them in breach of trust. In the event of such a breach, the beneficiaries of the trust may be entitled to pursue remedies against the stranger. The third party is termed a ‘stranger to the trust’ because he or she was not a trustee and, therefore, was not subject to any obligations prior to his or her involvement in the breach. Remedies against third parties may prove more attractive to the beneficiaries than their remedies against the trustee in breach. The availability of remedies against a stranger to the trust will be especially important if the trustee is insolvent, thus rendering direct remedies against the trustee ineffective.


Legal Studies ◽  
1981 ◽  
Vol 1 (3) ◽  
pp. 287-295
Author(s):  
P.J. Davies

It is commonplace in the commercial world for contractual obligations to be performed by persons other than the original parties to the contract. Because of the doctrine of privity of contract persons who are not party to a contract generally cannot take advantage of terms contained in it. If, therefore, a person undertakhg the performance of obligations which someone else has originally assumed misperforms those tasks so as to incur legal liability towards the other original contracting party, it would seem that he cannot rely on a protecting clause in the contract even though that clause may purport to afford him cover. A variety of avenues of escape from this situation (which is often commerically inconvenient) have been at various times advocated: the doctrine of vicarious immunity and the trust idea have been explored and eventually rejected. Other methods of avoidance retain more vigour: we have probably not heard the last of arguments based on the doctrines of volenti non fit injuria and disclaimer, of the bailment on terms and of the idea of spelling out a separate contract (or offer) between the party now suing and the third party.


1952 ◽  
Vol 11 (2) ◽  
pp. 240-257
Author(s):  
T. C. Thomas

The purpose of this article is to consider the legal effects of a transfer of property by A to B subject to the performance by B of some obligation in favour of C, a third party to the transfer. The student of the law of contract is well familiar with the common law rule that no one who was not an original party to the contract is entitled to the benefit of that contract. But this rule creates hardship in particular cases and it has been shown that, in the main, three methods have been evolved to evade those unfortunate results. First, the legislature has intervened and provided C, the third party, with statutory rights. Secondly, the doctrine of agency has been invoked whereby C may claim that he is the principal of B. Thirdly, but with varying success, the trust concept has been pressed into service whereby C has sometimes been able to show that he is a beneficiary.


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