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Third Parties Act meaning

What does Third Parties Act mean?
A practitioner’s shorthand for the contracts (Rights of third parties) Act 1999. In practice, it relaxes privity by enabling a non-party to enforce a contract term in its own right where either: (a) the contract expressly states it may do so, or (b) the term purports to confer a benefit on that person, provided the person is identified by name, class or description. This is a statutory regime (England & Wales and Northern Ireland), subject to specified exceptions, and parties can exclude or tailor its operation in their drafting. A third party’s remedies mirror those of a contracting party and are subject to the same defences, set-offs and limitations. Once the third party’s right has crystallised (by assent, reliance or as agreed), variation or rescission requires its consent. Arbitration and jurisdiction clauses generally apply to the third party when enforcing. Scotland uses a separate statutory regime: the Contract (Third Party Rights) (Scotland) Act 2017 (not the 1999 Act). In Ireland, there is no general third-party rights statute; privity of contract remains the default, subject to limited statutory exceptions and common law mechanisms (for example, agency, trust and collateral contracts).
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View the related Checklists about Third Parties Act

CHECKLISTS
Enforcing third-party benefits under contracts: practitioner checklist for invoking the Contracts (Rights of Third Parties) Act 1999, its limits, variation consent and defences

This Checklist This Checklist sets out the questions to address when you are looking to enforce a third party’s rights under a contract. The common law doctrine of privity of contract states that, as a general principle, an agreement cannot grant rights or impose duties created by its terms on anyone other than its parties, with the result that a person who is not a party ordinarily has no standing to enforce it. There are, however, situations in which a contract appears to bestow a benefit on a third party (or on several third parties), and those beneficiaries may wish to seek enforcement of that advantage. In such circumstances, attention should be given to the recognised exceptions to the privity rule-see Practice Note: Third party rights-the common law doctrine of privity of contract. One prominent exception is the ability to enforce third party rights by relying on the Contracts (Rights of Third Parties) Act 1999 (C(RTP)A 1999). This Checklist identifies the questions to ask when considering whether to rely...

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CHECKLISTS
English law debt securities terms and conditions: practitioners' review and negotiation checklist for first-time issuers, covering secured/unsecured, trustee or fiscal agent, bearer or registered, and mini-bonds

What this checklist covers This checklist sets out the principal matters a solicitor guiding a first time issuer must verify and, where appropriate, propose changes to, when reviewing English law terms and conditions governing an issue of debt securities...

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CHECKLISTS
Publishing Agreement Negotiation and Drafting Checklist: Grant of rights, subsidiary and moral rights, formats and territories, fees and royalty accounting, warranties/indemnities, termination, dispute resolution and execution

How to use this Checklist This Checklist aims to flag common issues that emerge during the negotiation and drafting of a publishing agreement. For a model publishing agreement, see Precedent: Publishing agreement—pro-publisher. For more detail on matters raised in this Checklist, consult Practice Notes: Assigning intellectual property rights; Licensing intellectual property rights. Where appropriate, this Checklist can also act as the basis of a simple, non-binding heads of terms. For guidance on doing so, see Precedent: Heads of terms—commercial contracts. The third column can be used to capture observations or comments as the Checklist is completed. Checklist schedule for proposed publishing agreement Checklist Further information Notes (if any) Parties Verify each party’s legal status and consider whether any third parties (such as group affiliates) will benefit from the proposed agreement. Commencement, duration and termination Confirm the start or effective date. Determine whether the agreement lasts for the full copyright term in the work or for a...

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FLOWCHARTS
EU Foreign Subsidies Regulation: Flowchart of Mandatory Notification and Review Procedure for Concentrations (Acquisitions and Joint Ventures)

ARCHIVED: This flowchart has been archived and is no longer supported. It summarises how the Third Parties (Rights Against Insurers) Act 2010 (TP(RAI)A 2010) and the Third Parties (Rights Against Insurers) Act 1930 are applied within this flowchart overview...

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NEWS
Empty rates mitigation via short leases upheld under pre‑2024 England regime (City of London v 48th Street Holding): genuine intermittent occupation satisfies Laing; Hurstwood distinguished

The Mayor and Commonality and Citizens of The City of London v 48th Street Holding Ltd and another company [2025] EWHC 1130 (KB) What was the background? The second defendant (‘POLL’) traded in devising rate mitigation schemes (the RMS) for empty premises for third parties. The first defendant, 48SHL, implemented one such arrangement and relied on it as a defence to a claim for non‑domestic rates. Under the arrangement, once relevant property fell vacant, section 45(1) of the Local Government Finance Act 1988 together with the Non‑Domestic Rating (Unoccupied Property) (England) Regulations 2008, SI 2008/386, regs 3 and 4a, operated to confer an exemption from liability for unoccupied rates for three months and, on the expiry of that three‑month period. To facilitate this, 48SHL granted POLL a lease of the premises and, at the same time, served a break notice bringing the lease to an end six weeks after the grant. This was done to demonstrate occupation by POLL for the scheme’s purposes...

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NEWS
UK Public Law Weekly Update: Brexit, Judicial Review, Human Rights, Procurement, Subsidy Control and FOI—Key Cases and Legislative Changes, Week Ending 26 February 2026

In this issue: Brexit headlines Constitutional and administrative law Equality and human rights Judicial review Public procurement Subsidy control and State aid Information law Other Public Law news Daily and weekly news alerts New and updated content Dates for your diary Trackers Useful information Brexit headlines Court of Appeal restricts education-based residence right under UK-EU Withdrawal Agreement—R (Ayoola) v Home Secretary In R (Ayoola) v SSHD [2025] EWCA Civ 1519, the Court of Appeal held that Articles 24(2) and 25(2) of the Withdrawal Agreement do not confer fresh residence entitlements; they merely safeguard education‑linked derivative residence rights that existed before withdrawal from the EU. Specifically, children of EU nationals had residence rights under Article 12 of Regulation 1612/68 (later Article 10 of Regulation 492/2011). Their third‑country national parents held residence rights only where their presence was required for the child. CJEU case law acknowledged and reinforced those derivative entitlements. Nonetheless,...

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NEWS
EU Law weekly: competition/FSR, GDPR platform liability, financial services (DORA–CTP MoU), energy/environment (PFAS, Ocean Act), UPC ruling, passenger rights, AI Act and DMA reviews—15 January 2026

In this issue EU fundamentals Competition and state aid Data protection and cybersecurity Financial services Energy Environment Insurance and reinsurance Life sciences Regulatory TMT Daily and weekly news alerts New and updated content Trackers EU fundamentals EU Law—key developments in 2025 and horizon scanning for 2026 This News Analysis distils the principal EU developments from 2025 and highlights what is expected in 2026. See News Analysis: EU Law—key developments in 2025 and horizon scanning for 2026. Competition and state aid Antitrust—Google and Alphabet v Commission An application for annulment has been submitted to the General Court in Case T-794/25, Google and Alphabet v Commission, contesting the Commission’s prohibition decision on Adtech and data-related practices (abuse of dominance) (AT.40670), under Article 102 TFEU and Article 54 of the EEA Agreement—see further, application. See News Analysis: EU Competition law—daily round-up (12/01/2026). Foreign Subsidies Regulation—Commission’s guidelines The Commission...

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View the related Practice Notes about Third Parties Act

PRACTICE NOTES
Allocating Intra‑UK Civil Jurisdiction under the CJJA 1982: Scope, Domicile, Special/Exclusive Jurisdiction, Agreements, Consumer/Employment, Forum Non Conveniens, and Interaction with Brussels I (recast) Post‑Brexit

Allocation of jurisdiction within the UK under the CJJA 1982 This Practice Note explores how jurisdiction is apportioned across the UK under the Civil Jurisdiction and Judgments Act 1982 (CJJA 1982). It examines the scope of that regime and the conditions that must be satisfied for it to apply, and considers its interaction with Regulation 1215/2012, Brussels I (recast) (the Regulation). It sets out the primary rule together with the departures from it, and, lastly, addresses forum non conveniens in this setting. The CJJA’s intra-UK jurisdiction framework is designed to furnish rules allocating jurisdiction inside the UK itself. Distinct rules and factors arise when assessing whether UK courts possess jurisdiction over a claim that contains an international dimension. The UK comprises four countries, yet there are only three legal jurisdictions, and CJJA 1982, s 50, describes each as ‘parts of the UK’. England and Wales Scotland Northern Ireland Practitioners in England engaged in cross-border disputes must be cognisant of a range...

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PRACTICE NOTES
US FCPA: managing third‑party anti‑bribery risk with due diligence, contractual controls, training and oversight; SEC books and records and internal controls obligations

ARCHIVED: This archived Practice Note is not being maintained. Today, most global businesses work with third parties, tapping into vital capabilities that help them operate across markets. Yet those relationships can also carry significant corruption exposure, potentially resulting in breaches of the Foreign Corrupt Practices Act (FCPA). With the right diligence, tailored contractual terms, targeted training, and robust oversight, organisations can manage FCPA risk while still benefiting from third-party contributions to their operations. The FCPA bars corrupt payments made through intermediaries when a company is ‘knowing’ that some or all of the money will be passed to a foreign government official. It is not necessary to have actual knowledge of a third party’s conduct; wilful blindness can be enough to attribute knowledge. In practice, businesses cannot look the other way or disregard indications of possible bribery by those they engage. Agents, distributors, consultants, contractors, and subcontractors Service-providers, suppliers, and other non-intermediary third parties Effective third-party engagement should include anti-corruption due diligence,...

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PRACTICE NOTES
UK Bribery Act 2010: offences, corporate and senior officer liability, failure to prevent, extraterritorial reach, facilitation payments, penalties and the adequate procedures defence - practical guide for lawyers

The Bribery Act 2010 (BA 2010) Enacted to secure the UK’s adherence to the Organisation for Economic Co-operation and Development’s (OECD) Convention on Combating Bribery of Foreign Public Officials in International Business Transactions, the Bribery Act 2010 (BA 2010) delivers an effective framework to address corruption across public and private spheres, updating the UK’s anti-corruption regime and supplanting Prevention of Corruption Act 1906 and Prevention of Corruption Act 1916. BA 2010 carries significant consequences for any company incorporated in, or trading from, the UK. Its global reach covers bribery undertaken by a business, or by third parties acting for it, regardless of where in the world the conduct occurs...

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View the related Precedents about Third Parties Act

PRECEDENTS
Deed of Planning Obligation under Section 106 TCPA 1990 (England): Precedent covering financial contributions, section 278 Highways Act 1980 works, open space, affordable housing, public art and biodiversity net gain

This Agreement is entered into on [ insert date ] of [ insert month ] [ insert year ] by and between: [ insert name ], of [ insert address ] (' Council '); [ insert name ], of [ insert address ] (' County Council '); [ insert name ], a company duly incorporated and registered in [ insert details ] under number [ insert details ], whose registered office is at [ insert address ] (' Developer '); [ Additional parties as necessary eg owner, landlord, mortgagee, option holder etc. ] (' [ insert additional parties as necessary eg owner, landlord, mortgagee, option holder etc ] '). Recitals The Council is the local planning authority for the purposes of section 106 of the 1990 Act for the area within which the Land is situated and is the body by whom the obligations contained in this Deed are enforceable. The County Council is the local highway...

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PRECEDENTS
Consultancy agreement precedent (company–individual consultant), pro‑client — England and Wales — substitution, IP assignment, confidentiality, data protection, anti‑bribery, tax evasion and fraud prevention, termination and post‑termination restrictions

Stop press: The Data (Use and Access) Act 2025 (Commencement No 6 and Transitional and Saving Provisions) Regulations 2026, SI 2026/82 bring the remaining elements of the Data (Use and Access) Act 2025 (DUAA 2025) into operation. Measures addressing subject access requests, legitimate interests, purpose limitation, automated decision-making, international transfers and enforcement apply from 5 February 2026, while the provisions on penalty notices and complaints apply from 19 June 2026. For further details, see Practice Note: Data (Use and Access) Act 2025—employment implications. This Precedent will be revised shortly to reflect these updates. This Agreement is entered into on [ insert date ] Parties [ Name of Company ], a company incorporated in England and Wales with registered number [ insert company number ] whose registered office is at [ insert address ] (the Company); and [ Name of consultant ], of [ insert address ] (‘ you ’). Background (A) You operate in the business of [ insert description...

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PRECEDENTS
Pro-buyer employment and TUPE warranties for UK asset purchase agreement

1 Definitions and interpretation 1.1 [ Include the following additional definitions in the definitions clause of the Asset purchase agreement (if required) ] Accounts Date • [ specify day and month ] 20[ specify year ]; Business • the undertaking of [ provide a description of the business being acquired ] carried on by the Seller, together with all other activities, including those ancillary, incidental to, or connected with that undertaking, as conducted by the Seller; Buyer • [ provide details ]; Completion • the finalisation of the sale and purchase of the Business through the Parties performing their respective obligations in accordance with clause [ x ]; Completion Date • [ the day on which Completion occurs OR a date no later than the [ third ] Business Day after the date on which the last of the Conditions is satisfied or waived, or the date to which Completion is deferred ] pursuant to clause [ x ]; Data Protection...

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Q&As
Lease of part: 1995 Act split reversion, tenant covenants and 1954 Act

Section 3 of the Landlord and Tenant (Covenants) Act 1995 (LT(C)A 1995) Section 3 of the Landlord and Tenant (Covenants) Act 1995 states that, for any tenancy to which the LT(C)A 1995 applies, every landlord and tenant covenant attaches to and is inherent in the entirety of the demised premises and their reversion, as well as in each and every part, and on an assignment of the whole or any part of the premises or of the reversion, those rights and obligations pass in line with the section, and will do so automatically on such assignment. This signifies that covenants are not, save for specified exceptions, personal as between the parties; rather, they relate to, and run with, the land...

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Q&As
Equitable assignment of commercial lease: assignee in possession with landlord consent, formalities incomplete

What are the formality requirements for assigning a commercial lease? There are three principal formalities for assigning a lease. First, the agreement to assign must be in writing and signed, and it must contain all terms expressly agreed by the parties in a single document or, if contracts are exchanged, in each counterpart (section 2 of the Law of Property (Miscellaneous Provisions) Act 1989 (LP(MP)A 1989)). Second, the assignment must be carried out by deed, even where the lease itself was originally granted orally (section 53 of the Law of Property Act 1925; Crago v Julian). Third, if the lease being transferred is a registered lease, the assignment only completes once it has been registered at HM Land Registry (section 27(1)(a) of the Land Registration Act 2002 (LRA 2002))...

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Q&As
Due diligence on intermediaries: counsel, surveyors, outsourcing

Section 7 of the Bribery Act 2010 (BA 2010) provides: (1) A relevant commercial organisation (“C”) is guilty of an offence under this section if a person (“A”) associated with C offers a bribe to another person with the intention of: (a) securing or retaining business for C; or (b) securing or retaining an advantage in the conduct of C’s business. (2) However, it is a defence for C to prove that it had in place adequate procedures devised to prevent persons associated with C from carrying out such conduct. BA 2010, s 8 defines an associated person: (1) For the purposes of section 7, a person (“A”) is associated with C if (disregarding any bribe under consideration) A is a person who performs services for or on behalf of C. (2) The capacity in which A performs services for or on behalf of C does not matter. (3) Accordingly A may (for example) be C’s...

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