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Contribution to Book
Rights and Obligations of Third Parties
Encyclopedia of Law & Economics, Vol. III: The Regulation of Contracts (2000)
  • Aristides N. Hatzis, University of Athens

Three different issues, related to third party involvement in a contractual relationship, are examined. The first two (assignment of contractual rights/delegation of contractual duties and third-party beneficiary contracts) are examined in a unified way. After pointing to the striking similarity between beneficiary and assignment contracts, we discuss the non-simultaneous assent argument, the danger of creating open classes of beneficiaries without the intention of the contracting parties, and other problems. In a second part, we deal with the controversial issue of efficient breach due to inducement by a third party. After reviewing the literature, we briefly consider the use of liquidated damages as an instrument that is better-suited than a tort for the protection of the subjective valuation and the risk aversion of the promisee.

  • economics of contract law
Publication Date
September, 2000
Boudewijn Bouckaert & Gerrit De Geest
Edward Elgar
Citation Information
Aristides N. Hatzis. "Rights and Obligations of Third Parties" 1stCheltenham, UKEncyclopedia of Law & Economics, Vol. III: The Regulation of Contracts Vol. 3 (2000)
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