The Sanction for Breach of Contractual Obligations in Detriment of Third Parties

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Abstract

According to the principle of privity of contract and that the contract does not establish any right or obligation with respect to third parties except in exceptional cases, this question arises that if breach of contractual obligation result in damages to the third parties what action or actions they can to do to prevent the losses or to claim compensation of damages? This study after analysis of different aspects about this issue, has achieved to this consequence that in cases that the sole solution for the prevention of damages to the third parties is binding the promisor to specific performance of contract, using such solution by the third party does not face any barrier. Moreover, in the case of occurrence of damages to the third party, he/she can exploit some rules such as deception and causation to claim the damages from the promisor. 

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