Jurisdiction(s):
Ireland

Ireland: Law Reform (Contracts) Bill 2024—third-party enforcement rights, variation restrictions, promisor defences, and double recovery safeguards; Private Members’ Bill with uncertain prospects

Published on: 07 May 2024

Published by a LexisNexis Ireland - Commercial expert

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How will it work?

The idea that a benefit can be granted to, and enforced by, someone outside a contract is acknowledged in many common law systems (including, among others, South Africa) through the stipulatio alterii doctrine, which stems from Roman law and permits a third party to profit from an agreement to which they are not themselves a party. This rule allows one party to make a promise to another that expressly advantages a third person, who then gains the right to enforce the benefit given to them by the contract, even though they were not a party to the original agreement. The stipulatio alterii principle was brought into the law of England and Wales in 1999 by the Contracts (Rights of Third Parties) Act 1999. The orthodox doctrine of privity of contract holds that only those who are parties to a contract are entitled to enforce its terms or...

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