The Contracts Rights of Third Parties Act 1999 Shall Not Apply to This Agreement

The Contracts Rights of Third Parties Act 1999 (CRTPA) specifies that third parties have the right to enforce a contract between two parties as long as the contract explicitly mentions them. However, in certain circumstances, parties may wish to exclude the application of the CRTPA to their agreement. This is where the phrase “the Contracts Rights of Third Parties Act 1999 shall not apply to this agreement” comes into play.

There are a few reasons why parties may choose to exclude the CRTPA. One of the most common reasons is to limit the number of parties who can enforce the contract. For example, if a company enters into a contract with a vendor, they may not want the vendor`s employees or subcontractors to have the right to enforce the contract.

Another reason why parties may exclude the CRTPA is to avoid unexpected liabilities. If a third party is able to enforce a contract, they could potentially sue one or both of the parties for damages. This could lead to legal fees, court costs and other expenses that the parties did not anticipate when entering into the agreement.

It`s important to note that excluding the CRTPA does not mean that third parties have no rights at all. Instead, it means that they cannot enforce the contract themselves. In some cases, third parties may still have rights under other laws, such as consumer protection laws or employment laws.

If you are drafting a contract and wish to exclude the CRTPA, it`s important to be clear and explicit about your intention. You should include the phrase “the Contracts Rights of Third Parties Act 1999 shall not apply to this agreement” in the contract, preferably in a prominent place such as the preamble or the definitions section. You may also want to include a statement explaining why you are excluding the CRTPA.

In conclusion, excluding the Contracts Rights of Third Parties Act 1999 from a contract is a useful tool for parties who wish to limit the number of parties who can enforce the contract and avoid unexpected liabilities. However, it`s important to be clear and explicit about your intention to exclude the CRTPA and to understand that third parties may still have rights under other laws.

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