Contract and Commercial Law Act 2017

Contracts legislation - Contractual privity

11: Interpretation

You could also call this:

“Explaining special words used in this part of the law”

In this part of the law, some words have special meanings. You need to know these meanings to understand the law better.

A ‘beneficiary’ is someone who gets something good from a promise made in a contract, even if they didn’t make the contract themselves.

A ‘benefit’ can be many things. It can be something good that happens to you, or something bad that doesn’t happen to you. It can also be when you don’t have to do something that you might usually have to do, or when you get more of something good that you already have.

A ‘contract’ is an agreement between people. It can be written down, spoken out loud, or a mix of both. Sometimes, the law says there’s a contract even if people didn’t write it down or say it out loud.

A ‘promisee’ is someone who is part of a contract and gets a promise from someone else in that contract.

A ‘promisor’ is someone who is part of a contract and makes a promise to someone else in that contract.

These special meanings help explain what the law means when it uses these words in section 12.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6844053.


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Part 2 Contracts legislation
Contractual privity

11Interpretation

  1. In this subpart, unless the context otherwise requires,—

    beneficiary, in relation to a promise to which section 12 applies, means the person described in section 12(1)

      benefit includes—

      1. any advantage; and
        1. any immunity; and
          1. any limitation or other qualification of—
            1. an obligation to which a person (other than a party to the deed or contract) is or may be subject; or
              1. a right to which a person (other than a party to the deed or contract) is or may be entitled; and
              2. any extension or other improvement of a right or rights to which a person (other than a party to the deed or contract) is or may be entitled

                contract includes a contract—

                1. made by deed or in writing, orally, or partly in writing and partly orally; or
                  1. implied by law

                    promisee, in relation to a promise to which section 12 applies, means a person who is both—

                    1. a party to the deed or contract; and
                      1. a person to whom the promise is made or given

                        promisor, in relation to a promise to which section 12 applies, means a person who is both—

                        1. a party to the deed or contract; and
                          1. a person by whom the promise is made or given.

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