Page:Contracts (Rights of Third Parties) Ordinance (Cap. 623).pdf/7

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Contracts (Rights of Third Parties) Ordinance

Ord. No. 17 of 2014

Section 8
A1669

(4) The order may be made subject to any condition that the court thinks fit, including a condition requiring that the third party be compensated.

8. Proceedings brought by third party

(1) Subsections (2), (3) and (4) apply if a third party brings proceedings to enforce a term of a contract under section 4.

(2) The promisor may raise one or more of the following matters by way of defence or set-off—

(a) a matter that—
(i) arises from or in connection with the contract and is relevant to the term; and
(ii) would have been available to the promisor by way of defence or set-off if the proceedings had been brought by the promisee;
(b) a matter in respect of which the following conditions are met—
(i) an express term of the contract provides for the matter to be available to the promisor by way of defence or set-off in proceedings brought by the third party; and
(ii) the matter would have been available to the promisor by way of defence or set-off if the proceedings had been brought by the promisee;
(c) a matter that would have been available to the promisor by way of defence or set-off if the third party had been a party to the contract.

(3) The promisor may raise, by way of counterclaim, a matter not arising from the contract that would have been available to the promisor by way of counterclaim against the third party if the third party had been a party to the contract.