<P> The second situation, that a third party can enforce terms that "purport to confer a benefit on him", has been described by Meryll Dean as too broad, and one view put forward in the parliamentary debates was that it was "un-workable" in situations such as complex construction contracts involving dozens of sub-contractors with chains of contracts among them . This argument, and a proposal to exempt the construction industry from the Act, was rejected by both the Law Commission and Parliament . The phrase "purport to confer a benefit" was originally found in the 1937 Law Commission paper, and was used in the New Zealand Contracts (Privity) Act 1982 before it was adopted for the English Act . </P> <P> The third party must be identified by name or as a member of a particular group, and does not need to exist when the contract was made . This can cause problems, however--if, for example, a party (party A) enters a contract to have another party (party B) construct a building, and A later sells the building to C who finds that it has structural problems, C has no cause of action against B because he was not named in the original contract . </P> <P> If a third party chooses to enforce the terms of a contract, he can do so against the promisor and has the right to any remedy that would be available if he was party to the contract, such as specific performance . An exception to this is the ability to terminate the contract and have it rendered void, since the Law Commission believed that "the third party should not be entitled to terminate the contract for breach as this may be contrary to the promisee's wishes or interests". </P> <P> Although the topic is not discussed in the Law Commission's report or the bill itself, it is generally considered that the third party has no rights against the promisee, regardless of his rights against the promisor . Andrew Burrows, who prepared the Law Commission's report, said that the third party does not acquire rights against the promisee, something Guenter Treitel has also suggested . A different stance is taken in Scots law, where a promisee has a duty to the third party to ensure performance of the contract . </P>

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