Title

IV.6.4 - No contract to detriment of third party

Content

No. IV.6.4 - No contract to detriment of third party

Contracts may not be concluded to the detriment of a third party ("res inter alios acta alteri non nocet").

Commentary

This Principle takes account of the fact that a contract has legal effects only between its parties ("inter partes"). While the parties may conclude a contract for the benefit of a third party, they may never, however, provide for contractual stipulations to the detriment of a third party which is not a party to the contract. In order for such stipulations to be binding on that third party, that party must become a party to the contract which contains these stipulations.

References

Doctrine

Fouchard, Philippe, L'Arbitrage Commercial International, Paris 1965

Aguilar Alvarez, Guillermo, note to ICC Award No. 4972, Clunet 1989, at 1105 et seq.Domingo, Ortega, Rodriguez-Antolin, Zambrana, Principios de Derecho Global, Navarra, 2006Kersley, R.H., M.A., LL.M./ Broom, Herbert, LL.D., A Selection of Legal Maxims, 10th ed. London, 1939

Arbitral Awards

ARAMCO-Award, ILR 1963, at 117 et seq.ICC Award No. 4972, Clunet 1989, at 1100 et seq.

National Legislation

Civil Code Québec 1991French Civil Code 2016Indonesian Civil Code (excerpts)Russian Civil Code

International Legislation

Fontaine, Marcel, OHADA Uniform Act On Contract Law Preliminary DraftVienna Convention on the Law of Treaties of 1969

Contract Clauses

1. Contract Binding on Parties OnlyEmployment Contract