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Contract and Commercial Law Act 2017

Contracts legislation - Contractual privity

13: Section 12 does not apply if no intention to create obligation enforceable by beneficiary

You could also call this:

“Section 12 doesn't work if the contract wasn't meant to give someone special rights”

Section 12 doesn’t apply in certain situations. If you look closely at a deed or contract, and it’s clear that the people who made it didn’t mean to create something that a beneficiary could enforce, then Section 12 won’t be used. This means that if the promise in the deed or contract wasn’t meant to give the beneficiary a right they could use in court, Section 12 won’t come into play. It’s all about what the people who made the deed or contract intended when they wrote it.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6844065.

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"Promises made in contracts can help people who didn't sign them"

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Part 2 Contracts legislation
Contractual privity

13Section 12 does not apply if no intention to create obligation enforceable by beneficiary

  1. Section 12 does not apply to a promise that, on the proper construction of the deed or contract, is not intended to create, in respect of the benefit, an obligation enforceable by the beneficiary.

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