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Contracts (Rights of Third Parties) Act 2019

The Contracts (Rights of Third Parties) Act 2019 allows individuals who are not part of a contract (third parties) to enforce certain terms if the contract explicitly lets them do so. Previously, only the parties involved could rely on the contract’s benefits or obligations, unless the contract stated otherwise. This law makes it easier for third parties, such as subcontractors or beneficiaries, to claim their rights directly. It aims to increase fairness and clarity in contractual relationships by clarifying when third parties can enforce relevant provisions, provided the contract indicates their right to do so.