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Section 64: Third party rights to enforce contract terms in Uganda

64.Right of third party to enforce contractual term

(1)Subject to this Act, a person who is not a party to a contract may in his or her own right enforce a term of the contract where—

(a)the contract expressly provides that he or she may do so; or

(b)subject to subsection (2), a term of the contract confers a benefit on that person.

(2)Subsection (1)(b) does not apply where on a proper construction of the contract, it appears that the parties did not intend the term to be enforceable by a third party.

(3)A third party shall be expressly identified in a contract by name, as a member of a class or as answering a particular description; but need not be in existence at the time the contract is entered into.

(4)This section does not confer a right on a third party to enforce a term of a contract except where the term is subject to and in accordance with any other relevant term of the contract.

(5)For the purpose of exercising the right to enforce a term of a contract, a third party shall have available any remedy that would have been available to him or her in an action for breach of contract, had that third party been a party to the contract, and the rules relating to damages, injunctions, specific performance and other relief shall apply accordingly.

(6)Where a term of a contract excludes or limits liability in relation to any matter, any reference in this Act, to the enforcement of a term of a contract shall be construed as a reference to the third party availing himself or herself of the exclusion or limitation.

Plain English Summary

You do not have to be a signatory to a contract to enforce a specific term of it. If the contract clearly says you can enforce that term, or if the te...

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🔍Search Tips
  • • Search by keyword: "land", "tax", "arrest"
  • • Use exact phrases: "land commission"
  • • Enter citations: 45, 45(3)(a), 45:3:a
  • • Press / to search, Esc to close

Searching within Contracts Act. Faster results.