Relaxations of Contractual Privity and the Need for Third Party Rights in Chinese Contract Law

In Mindy Chen-Wishart, Alexander Loke, and Stefan Vogenauer (eds), Studies in the Contract Laws of Asia II: Formation and Third Party Beneficiaries (Oxford University Press, 2018), Chapter 3.

Posted: 28 Aug 2018

See all articles by Lei Chen

Lei Chen

City University of Hong Kong (CityUHK) - Centre for Chinese & Comparative Law

Date Written: August 23, 2018

Abstract

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 third party 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.

Keywords: Chinese law, Third party rights

Suggested Citation

Chen, Lei, Relaxations of Contractual Privity and the Need for Third Party Rights in Chinese Contract Law (August 23, 2018). In Mindy Chen-Wishart, Alexander Loke, and Stefan Vogenauer (eds), Studies in the Contract Laws of Asia II: Formation and Third Party Beneficiaries (Oxford University Press, 2018), Chapter 3.. Available at SSRN: https://ssrn.com/abstract=3237311

Lei Chen (Contact Author)

City University of Hong Kong (CityUHK) - Centre for Chinese & Comparative Law ( email )

83 Tat Chee Avenue
Room P5300, 5th Floor, Academic 1
Kowloon Tong
Hong Kong

Register to save articles to
your library

Register

Paper statistics

Abstract Views
52
PlumX Metrics
!

Under construction: SSRN citations while be offline until July when we will launch a brand new and improved citations service, check here for more details.

For more information