Cayman Islands: the Contracts (Rights of Third Parties) Law 2014
The Contracts (Rights of Third Parties) Law 2014 was published in the Cayman Islands Gazette on 21 May 2014 and comes into force with immediate effect. Subject to certain exceptions, the law allows for the enforcement of contractual rights by a third party. Accordingly, the law permits a variation of the pre-existing position under Cayman Islands law based upon the common law doctrine of privity of contract. The law is similar to the UK’s Contracts (Rights of Third Parties) Act and to legislation enacted in several other common law jurisdictions.
The doctrine of privity of contract provides that a person (a ‘third party’) may not acquire and enforce rights or have obligations imposed upon it by a contract to which it is not a party (even where it is the parties’ clear intention that a contractual right should benefit a third party, including, for example, indemnification/exculpation provisions).
Pursuant to the law, a third party may in its own right enforce a term of a contract if: the third party is expressly identified in the contract by name, as a member of a class or as answering a particular description (and a third party may include a person not in existence when the contract is entered into); and the contract expressly provides in writing that the relevant third party may enforce the relevant term…
Click on the link below to read the rest of the Conyers Dill & Pearman briefing.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from Conyers Dill & Pearman
Briefings from Conyers Dill & Pearman
Difficult questions often arise in connection with BVI companies, with regard to directors.
To facilitate reporting under and reduce the burden of compliance with FATCA Bermuda has signed a Model 2 intergovernmental agreement with the US.