scholarly journals The Most Important Legislative Amendments Related to the Effect of the Contract Towards the Third Party in the French Civil Code Amended in 2016 and 2018

2020 ◽  
pp. 1-27
Author(s):  
Raghid Fattal ◽  

The French decree no. 131/2016 promulgated on Feb.10, 2016, and the Law no. 287/2018 promulgated on April 20, 2018 have amended many issues in the French Civil Code, including the doctrine “the contract has effect towards the parties only”. However, this doctrine is not very clear, and needs to be interpreted according to the new legislations. This shall include the idea that “the third party shall respect the legal status created by the contract”, and the idea that the third party can benefit from the legal status created by the contract as well. The doctrine according to which the simulated contract does not have effect towards the third party, and the nullity of the contract that simulates the true price, and how the amendments of the articles 1199 and 1200 of the French Civil Code affect the courts decisions that allow the third party to oblige the seller to execute the sale contract. It is also important to mention the conditions that allow the third party to sue for damages, the debtor who did not perform his/her contractual duties. We would like also to mention the opinions of the Law projects makers, and to compare the laws with the UAE Civil Transactions Law. The new doctrine of “binding himself on behalf of a third party” and the doctrine of “stipulation for the benefit of a third party” shall be interpreted according to the new legislations.

Jurnal MINUTA ◽  
2019 ◽  
Vol 1 (1) ◽  
pp. 14-19
Author(s):  
Evi Retno Wati

Generally collateral is divided into two, namely personal guarantee (persoonlijke zekerheid) and corporeal guarantee (zakerlijke zekerheid). On Personal collateral, what given by debtor was not an object but a statement made by the third party who has no interest at all both toward debtor or creditor. In the case that was reviewed in this research to wit The supreme court of Republic of Indonesia decree No. 2960 K/Pdt/2010 PT. Pertamina Dana Ventura (first named PT. Pertamina Saving & Investment), as a creditor filed a confiscation guarantee claim toward Kairudin Nur who is the guarantor of the debt of PT. Goro Bata Sakti (in bankruptcy) as a debtor. Guarantor in Indonesian Civil Code (later stated as KUHPer) is given a privilege which is stated in article 1831 KUHPer which given right to the guarantor to reject payment to creditor before the creditor’s property confiscated first and sold in order to pay the debts. If after the debtor’s property confiscated and sold are not enough to pay the debts, then in this case the guarantor is responsible for fulfilling the debts toward creditor. In The supreme court of Republic of Indonesia decree No. 2960 K/Pdt/2010, the guarantor right as ruled in KUHPer is violated. Therefore the law protection that can be given to the guarantor is the guarantor is given the right to accelerate the management and settlement toward debtor’s assets which were under curator supervision.


Author(s):  
Chen Lei

This chapter examines the position of third party beneficiaries in Chinese law. Article 64 of the Chinese Contract Law states that where a contract for the benefit of a third party is breached, the debtor is liable to the creditor. The author regards this as leaving unanswered the question of whether the thirdparty has a right of direct action against the debtor. One view regards the third party as having the right to sue for the benefit although this right was ultimately excluded from the law. Another view, supported by the Supreme People’s Court, is that Article 64 does not provide a right of action for a third party and merely prescribes performance in ‘incidental’ third party contracts. The third view is that there is a third party right of action in cases of ‘genuine’ third party contracts but courts are unlikely to recognize a third party action where the contract merely purports to confer a benefit on the third party.


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.


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.


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.


2019 ◽  
Vol 25 ◽  
pp. 67-90
Author(s):  
Witold Kurowski

The question of which law should govern the third-party effects of assignments of claims was considered during the preparation of the Rome I Regulation. The European Commission’s proposal for the Rome I Regulation admitted the law of the assignor’s habitual residence as the law that should apply to the proprietary effects of assignments of claims. Finally, EU Regulation on the law applicable to contractual obligations did not include the issue of the third-party effects of the assignment. However, Article 27(2) of the Rome I Regulation required the European Commission to present a report on the question of the effectiveness of assignments of claims against third parties accompanied, if appropriate, by a proposal to amend the Rome I Regulation. Proposal for a Regulation on the law applicable to the third-party effects of assignments of claims (COM(2018) 96 final) is a response to this request. This paper analyses current draft of the new EU Regulation, the rules on determination of the third-party effects of assignments of claims (law of the assignor’s habitual residence and law of the assigned claim) and "super conflict rules" in specific cases. The author argues that the law of the assignor’s habitual residence remains the appropriate conflict rule for proprietary effects of assignments of claims.


ALQALAM ◽  
2009 ◽  
Vol 26 (2) ◽  
pp. 193
Author(s):  
Jaih Mubarok

AI-Ijarah al-Muntahiyyah bi al-Tamlik (IMBT) is conceptually almost the same as leasing which is conducted by world financial institutions, including those of in Indonesia. IMBT is a service product of syari'a financial institution which is transparant and is able to involve the third party whenever it is necessary. In the context of Indonesia, economic syari'a is culturally designed and run by the Coumil of Indonesian Ulama (MUI). In order to regulate the bussiness in the syari'a system, MUI forms the Council of National Syari'a (DSN) issuing the fatwas; in order to give monitoring, DSN places The Board ef Syari'a Controller (DPS) in every business unit which uses syari'a system; in order to solve the syari'a business disputation, MUI forms the Arbitration Board of National Syari'a (Basyarnas). Moreover, The State has structurally accomodated the system of syari'a business in law and regulation. Therefore, The openess characteristics (the principle of free based contract) which is also practiced in the contract of IMBT is restricted by the law and regulation and considered appropriate in syari'a point of view based on DSN-MUI fatwas.


Author(s):  
Pattarapas Tudsri ◽  
Angkanawadee Pinkaew

This chapter examines the ability for third party beneficiaries to enforce contracts under section 374 of the Thai Civil and Commercial Code. The provision illustrates that the urgency for enactment of the Code came at the expense of depth and intricacy. Whereas the German Civil Code expressly provides that the third party’s entitlement to enforce the provisions of a contract may be inferred from the circumstances, such provision is absent in the Thai Code. While the intention of the parties should be capable of inference from the contract, Thai courts have demonstrated a reluctance to read section 374 broadly; compelling evidence is required before the third party is found to acquire rights. Apart from the four categories of contracts where the courts more readily find third party rights—insurance, compromise, a contract to discharge a debt owed by third party, and a contract to confer an option on a third party—parties are likely to find it difficult to invoke section 374. Underlying the judicial attitude is the strong grip of the privity rule, or to use the German-inspired term, the ‘relativity of contract’. This restrictive approach also applies to the interpretation of ‘performance’ which does not include conferment of benefits.


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