Third party rights clauses

The guidance note on third party rights clauses explores the complex interplay between contract law and the enforceability of benefits granted to third parties. Practitioners must understand how these clauses function within Australian legal frameworks, where their impact can differ significantly from other jurisdictions. This document provides comprehensive coverage of statutory modifications, exceptions to privity, and the limitations of contractual provisions affecting third-party enforcement rights.

Topics Covered

• Privity of contract
• Exceptions to the privity doctrine
• Third party rights clauses
• Precedents

Essential Insights

• Assess statutory modifications in Queensland, Western Australia, and Northern Territory affecting third-party enforceability.
• Evaluate how third party rights clauses may be overridden by general law, equity, or statutory provisions.
• Recognise critical distinctions between benefits conferred by contract, deed poll, and trust law mechanisms.
• Consider the impact of consumer protection laws on excluding or limiting third-party rights.
• Identify key legal risks when parties attempt to exclude third-party remedies through contract wording.
• Understand how property law concepts like “running with the land” influence third-party benefits.