Last Updated on June 27, 2021 by LawEuro
German Civil Code (BGB) German law
Title 3
Promise of performance to a third party
Section 328
Contract for the benefit of third parties
(1) Performance to a third party may be agreed by contract with the effect that the third party acquires the right to demand the performance directly.
(2) In the absence of a specific provision it is to be inferred from the circumstances, in particular from the purpose of the contract, whether the third party is to acquire the right, whether the right of the third party is to come into existence immediately or only under certain conditions, and whether the power is to be reserved for the parties to the contract to terminate or alter the right of the third party without his approval.
Section 329
Interpretation rule where there is an assumption of the duty to perform
Where one party to a contract agrees to satisfy an obligee of the other party without assuming the obligation, then in case of doubt it may not be assumed that the obligee is to acquire the right to demand satisfaction from him directly.
Section 330
Interpretation rule in the case of life annuity contracts
Where in a life annuity contract the payment of the life annuity to a third party is agreed, in case of doubt it must be assumed that the third party is to acquire the right to demand performance directly. The same applies if, in the case of a gratuitous disposition, a duty of performance is imposed on the person provided for, or, in the case of assumption of property or a landed estate, performance for a third party is promised by the assuming party for the purpose of providing satisfaction.
Section 331
Performance after death
(1) If the performance for the third party is to occur after the death of the person to whom it is promised, the third party acquires the right to the performance, in case of doubt, upon the death of the promisee.
(2) If the promisee dies prior to the birth of the third party, the promise to perform to the third party may only be cancelled or modified if the power to do so was reserved.
Section 332
Modification by disposition mortis causa in case of reservation
If the promisee reserves the power to place another in the place of the third party designated in the contract, then in case of doubt this may also be accomplished in a disposition mortis causa.
Section 333
Rejection of the right by the third party
If the third party rejects the right under the contract towards the promisor, the right is deemed to not have been acquired.
Section 334
Objections of the obligor in relation to the third party
The promisor is entitled to raise objections under the contract in relation to the third party too.
Section 335
Right of the promisee to make demands
The promisee may, where a different intention of the parties to the contract may not be assumed, demand performance for the third party even if the latter is entitled to the right to performance.
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