A Comparative Study of Incidental Third Party Beneficiary in The English and Iranian Law

Maraqi, Majid; Alborzi Verki, Masoud

doi:10.22034/law.2026.2077209.1728

A Comparative Study of Incidental Third Party Beneficiary in The English and Iranian Law

Articles in Press

Document Type : scientific research paper

Authors

Majid Maraqi ¹

Masoud Alborzi Verki ²

¹ Private Law, Faculty of Social Sciences, Imam Khomeini International University, Qazvin, Iran

² Assosiate professor,Department of law,faculity of social sciences,Imam Khomeini international University,Qazvin,Iran

10.22034/law.2026.2077209.1728

Abstract

In contracts concluded between its parties, whether in English law, which follows the common law legal system, or in the Iranian legal system, which is influenced and derived from The Islamic jurisprudence and Roman Germanic law, there is a fundamental principle called the "principle of relativity of contracts", according to which the effects of the contract and the obligations arising from it are limited to the parties to the contract. However, today, due to the increasing complexity of contractual relations, the requirements and necessities of protecting the rights of individuals, some laws and legal systems have recognized the possibility of some third parties being benefited and have made This Principle Subject to exceptions. In order to unification of The English legal system, a law entitled the Rights of third parties in contracts was passed in 1999, which divides third party beneficiaries into two categories: intended and accidental beneficiaries. In the present study, which was conducted to explain the possibility of third parties enjoying the benefits of a contract incidentally, it is concluded that in English law, the sources for identifying this type of beneficiary are based on the interpretation of laws, judicial precedent, and legal doctrine. In The Iranian law, its sources can also be identified by examining the existing limited laws, general rules of contracts, teachings of Imami jurisprudence, and theories of doctrine. The criteria for identifying an incidental third party beneficiary in both legal systems include the absence of the parties' intention to grant a benefit, the failure to specify a third party in the contract, as well as his being benefited from the contract in a secondary and collateral manner. Mean while, in neither of the two legal systems under study there is the possibility of requiring the party to perform the contract by an incidental third party beneficiary, and these individuals are not legally protected. Therefore,for The purpose of making the third party to be benefited from the contract, he can only wait for the performance of the contract by the obligor until a benefit appears for him.

Keywords

Common law

English law

incidental third-party beneficiaries

principle of relativity

privity of contracts

Subjects

Comparative study of legal disciplines

· Ansari, Sheikh Morteza.(1992). Al-Makaseb. (Vol.3): Implied Terms of a Contract. Qom: Majma al-Fiker al-Islamic.(In Arabic)

· Bahrami, Hosein.(2024). Reward Taken by a Trustee from a Third Party, With a Glance at English Law.Journal of Research and Development in Comparative Law.7(24):13. https://doi.org/10.22034/law.2024.2036736.1424 (In Persian)

· Corbin,A,L.(1918).Contracts For The Benefit Of Third Person.Published by:The Oxford University Press.

· Eisenberg,M,A.(1992).Third Party Beneficiaries.10(1).(Vol.92).New York:Columbia Law Rewiew. https://lawcat.berkeley.edu/record/1114344/files/fulltext.pdf

· Fazil, Moqdad bin Abdullah .(1982).Against the Rules of Jurisprudence. 1^st ed. Qom: Ayatollah Marashi Najafi Library .(In Arabic)

· Garner,B,A & others.(1999).Blak's Law Dictionary.7th ed.Published by:West Group.

· Habibi, Mahmoud .(2021). ((A Comparative and Analytical Study of the Concept and Position of a Third Party to a Contract)). Scientific Quarterly Journal of Judicial Law Perspectives 26 (94): 3-4. https://jlviews.ujsas.ac.ir/article_703667_db8e4a3b3b2f81f45c9e3219822a0cab.pdf (In Persian)

· Hashemi, Seyyed Ahmad Ali and TavakoliKia, Omid.(2023). Initiation of Direct Claim in French and Iranian Law with Emphasis on Regulations Regarding Third Party Insurance. Journal of Research and Development in Comparative Law.6(19):13-14. https://doi.org/10.22034/law.2023.1999080.1228 (In Persian)

· Izanlou, Mohsen and Hasuri Mahdi, Abbas and Shabani Kandsari, Hadi.(2012). ((Contractual Transfer of Contract in Imamiyyah Jurisprudence)). The Journal of Civil Jurisprudence Teachings 5(26):9. https://cjd.razavi.ac.ir/article_438_74303ee5f243429f6833d24777fb9fb1.pdf (In Persian)

· Jafari Langroudi, Mohammad Jaafar.(2012). Iran's Civil Code Glossed .25^th ed. Tehran: Ganj-e Danesh.(In Persian)

· Jafari Langroudi, Mohammad Jafar.(2009). Encyclopaedia of civil and commercial law.1^st ed. Tehran: Ganj-e Danesh.(In Persian)

· Khoui, Abul Qasim.(1997). Encyclopedia of Imam Khoui.(Vol.33). Qom: Institute for the Revival of the Works of Imam Khoui.(In Arabic)

· Khomeini, Ruhollah.(2013). Tahrir al-Wasilah. (Vol. 2): Book of Wills . Tehran: Institute for the Compilation and Publication of Imam Khomeini's Works.(In Arabic)

· Kessler,F.(1943).Contract of Adhesion:some thoughts about freedom of contracts.43(5).Columbia:Law Rewiew. https://chicagounbound.uchicago.edu/cgi/viewcontent.cgi?article=11639&context=journal_articles

· Katouzian, Nasser.(2022). General rules of contracts.(Vol.3): Effects of Contracts. 8^th ed. Tehran: Ganj-e Danesh.(In Persian)

· Katouzian, Nasser.(2022). General Rules of Contracts. (Vol.1): Concept, Formation and Validity of the Contract. 8^th ed. Tehran: Ganj Danesh.(In Persian)

· Moein, Mohammad.(2007). Persian Dictionary. 24^th ed. Tehran: Amir Kabir Publications.(In Persian)

· Mohammadi, Sam.(2006). ((Commitment in Favor of a Third party as the Consideration of a contract in Imamiyyah jurisprudence and Iranian Civil Law)). Journal of the Faculity of Humanities.University of Semnan 5(14):138-145. https://ensani.ir/fa/article/download/227918 (In Persian)

· Mohammadi, Pezhman and Sadeghi, Mahmod and Zolghadr, Mohammad Javad.(2025). A Comparative Study of the Impact of Contractual Assignment on Third Parties in Iranian and American Law.Journal of Research and Development in Private Law.2(4):13. https://doi.org/10.22034/jpl.2025.2067233.1224 (In Persian)

· Najafi, Mohammad Hassan.(1983).The Jewels of Speech in Explaining The Laws of Islam. Vol. 28. Beirut: Darahiya al-Trath al-Arabi.(In Arabic)

· Nudelman.s.(2019).Not all Third Party Beneficiaries Are Alike.San Fransisco:Legal Pipeline.

· Oghton,d & Davis,M.(2003).Source Book On Contract Law.2^nd ed.London:Cavendish Publishing Limited.

· Peel,E.(2015).Treitel The Law Of Contract.Sweet &Maxwell Ltd.

· Richards,P.(1998).Law of contract.4^th ed.London:Financial Times.

· Rouhani, Seyyed Mohammad Sadiq.(2008). The Path of the Righteous .(Vol.2). 1^st ed. Qom: Ijtihad.(In Arabic)

· Shahidi, Seyyed Mehdi.(2015). Civil Law:Obligations.(Vol.3). 9^th ed. Tehran: Ganj-e Danesh.(In Persian)

· Shahidi, Seyyed Mehdi.(2010). Effects of Contracts and Obligations.4^th ed. Tehran: Majd.(In Persian)

· Shoarian, Ebrahim and Torabi, Ebrahim.(2010). Principles of European Contract Law (A Comparative Study). 1^st ed. Tabriz: Forozesh Publications.(In Persian)

· Shiravi, Abdul Hossein.(2005). ((Demand for Performance of a contract by a Third Party Beneficiary in Common Law with Emphasis on the Laws of England, America and Australia)). Legal Thoughts. 3 (8): 2-5. https://jolt.ut.ac.ir/article_10395_b1565090e40acb0ce022a34f3bad31ef.pdf (In Persian)

· Shirvanizadeh Arani, Hamid and Mirzanjad Joybari, Akbar.(2023). (Prohibition of Imposing a Third Party as a Party to the Contract in Iranian and English Law). Scientific Quarterly Journal of Judicial Law Perspectives 27(99):2-17. https://doi.org/10.22034/jlvi.2023.703738 (In Persian)

· Shaheed Thani, Zain al-Din Ibn Ali.(1992). The Path ways of Understanding towards Revising the Laws of Islam .(Vol.5). Qom: Al-Maarif al-Islamiya Institute.(In Arabic)

· Szalwski,J-schmidt.(1995).International encyclopedia of Law.(vol.2).Contracts editor:Herbots,J.France:Kluwer and Taxation.Publishers:Devente.Boston.

· Sainz.B.(2025).Incidental Beneficiary :Rights & Limitations/Available at https://www.Up Counsel.com/Incidental-Beneficiary.

· Stimmel,Stimmel & Roeser.(2024).Third Party Beneficiary Of a Contract:The Basics/Available at https://www.Stimmel-Law.com/en/articles/Third-Party-Beneficiary-Contract-Basics.

· Tabatabaei Yazdi, Seyyed Mohammad Kazem.(1988). The Surest Bond . 2^nd ed.(Vol.2). Beirut: Scientific Institute Lelmatboat.(In Arabic)

· Treitel,Guenter.(2003).The law of contract.11^th ed.Thomson:Sweet & Maxwell.

· Thou Gathii,J.(2014).Incorporating The Third Party Beneficiary Principle In Natural Resource Contracts.43(93).Chicago:Schol Of Law. https://digitalcommons.law.uga.edu/cgi/viewcontent.cgi?article=2020&context=gjicl

· Wex Definitions Team.(2022).Restatments of The Contracts/Available at https:/www.Law.Cornel.Edu/Wex/Third-Party-Beneficiary.