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Law of Property Act 2000
56Contracts for the benefit of third parties
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56 Contracts for the benefit of third parties
(1) A promisor who, for valuable consideration moving from the
promisee, promises to do or to refrain from doing an act or acts for
the benefit of a beneficiary is, on acceptance by the beneficiary,
subject to a duty enforceable by the beneficiary to perform that
promise.
(2) Prior to acceptance by a beneficiary referred to in subsection (1),
the promisor and promisee may, without the consent of the
beneficiary, vary or discharge the terms of the promise and any
duty arising from it.
(3) On acceptance by a beneficiary referred to in subsection (1):
(a) the beneficiary is entitled in the beneficiary's own name to the
remedies and relief that are just and convenient for the
enforcement of the duty of the promisor and relief by way of
specific performance, injunction or otherwise is not to be
refused only on the ground that, as against the promisor, the
beneficiary may be a volunteer;
(b) the beneficiary is bound by the promise and subject to a duty
enforceable against the beneficiary in the beneficiary's own
name to do or refrain from doing any act that is required of the
beneficiary by the terms of the promise;
(c) the promisor is entitled to the remedies and relief that are just
and convenient for the enforcement of the duty of the
beneficiary; and
(d) the terms of the promise and the duty of the promisor or the
beneficiary may be varied or discharged with the consent of
the promisor and the beneficiary.
(4) Subject to subsection (1), a matter that, in proceedings not brought
in reliance on this section:
(a) would render a promise void, voidable or unenforceable,
whether wholly or in part; or
(b) is available by way of defence to enforce a promissory duty
arising from a promise,
renders the promise void, voidable or unenforceable or is available
by way of defence to enforce the promissory duty in like manner
and to the like extent as if in proceedings for the enforcement of a
duty to which this section gives effect.
Law of Property Act 2000 32
(5) To the extent that a duty to which this section gives effect may be
capable of creating and creates an interest in land, the interest is,
subject to section 11, capable of being created and of subsisting in
land under an Act (but subject to that Act).
(6) In this section:
acceptance means an assent by words or conduct communicated
by or on behalf of the beneficiary to the promisor, or to some
person authorised on the promisor's behalf, in the manner (if any)
and within the time specified in the promise or, if no time is
specified, within a reasonable time of the promise coming to the
notice of the beneficiary.
beneficiary means a person who is not the promisor or promisee
and includes a person who, at the time of acceptance of a promise
is identified and in existence although that person may not have
been identified or in existence when the promise was made or
promise means a promise in writing that:
(a) is or appears to be intended to be legally binding; and
(b) creates or appears to be intended to create a duty enforceable
by a beneficiary.
promisee means a person to whom a promise is made or given.
promisor means a person by whom a promise is made or given.
(7) Nothing in this section affects any right or remedy that exists or is
available apart from this section.
(8) This section applies only to promises made after the