Page:Contracts (Rights of Third Parties) Ordinance (Cap. 623).pdf/6

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Contracts (Rights of Third Parties) Ordinance

Ord. No. 17 of 2014

Section 7
A1667

(ii) the promisor can reasonably be expected to have foreseen that the third party would rely on the term.

(3) In addition, an express term of the contract prevails over subsection (1) if the term provides to the effect that—

(a) one or more parties to the contract may rescind or vary the contract without the third party’s consent; or
(b) the third party’s consent to rescind or vary the contract is required in circumstances specified in the contract instead of those set out in subsection (2)(a) and (b).

(4) Subsection (3) applies only if, before the circumstances set out in subsection (2)(a) or (b) occur—

(a) the third party is aware of the term referred to in subsection (3); or
(b) one or more parties to the contract have taken reasonable steps to make the third party aware of the term.

7. Power of court to dispense with third party’s consent to rescind or vary contract

(1) This section applies if a third party’s consent is required to rescind or vary a contract under section 6(1) or (3)(b).

(2) A party to the contract may apply to the court to make an order dispensing with the third party’s consent.

(3) The court may make the order if—

(a) the other party or each other party to the contract agrees to rescind or vary the contract; and
(b) the court thinks it just and practicable to make the order.