Contracts for the Benefit of a Third Party: The Problem of Classification
25 Pages Posted: 3 Aug 2013
Date Written: August 1, 2013
On the basis of analyzing disputes connected with the classification of contracts for the benefit of third parties, history, and development of this construct in Russian law and analyzing its use in foreign legal systems, this work shows that the formal approach, applied in Russia with regard to contracts for the benefit of third parties, considerably belittles the sphere of application of the construct. Another approach, based on conferring material benefit upon a third party, is developed. It is also shown that the former approach allows us to resolve a number of problems that arise when applying of the analysed contractual construct.
Keywords: contract law, contract for the benefit of a third party, privity of contract, classifying characteristics of contract
JEL Classification: K12
Suggested Citation: Suggested Citation