On the Protection of the Rights of Third Parties in Contracts with Real Interests
Article 522(2)of the Civil Code stipulates that a third party in a contract with genuine inter-ests has the right to request performance.However,when the contract does not expressly stipulate whether the third party has other rights such as the right to claim liquidated damages,the scope of the third par-ty's claim is ambiguous.The types of liquidated damages should be distinguished,and third parties should be excluded from the right to claim punitive damages,while compensatory liquidated damages related to the interests of third parties should be granted the right to claim.Third parties do not have the right to terminate the contract as they do not have the status of the main body of the contract.The parties may exercise the statutory right of revocation and rescission,but shall be liable for breach of contract to a third party.If the parties agree to modify or rescind the contract,the"reasonable period"shall be used as the boundary.The parties may agree to modify or rescind the contract before the expiration of the rea-sonable period,otherwise it shall not be accepted.If there is a conflict of claims between creditors and third parties,the priority should be to ensure the realization of the contract purpose.
true third party interestsright to claim liquidated damagesright to rescindconcurrence of claims
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