The intent of Section 8 is to allow a third party to use a compromise clause if the arbitration agreement is a written agreement for Part I of the 1996 Arbitration Act. Where the third party`s right to apply a clause is subject to a compromise clause, the law provides that the third party is treated as a party to the arbitration agreement for the purpose of a dispute between the third party and the promise of the application of a contractual clause by the third party. The new clause can have important implications for the promise; the secretary of the Lord`s Chancellor proposed that « the promisor … request a stay of the [legal] procedure under Article 9 of the Arbitration Act. The previous bill would not have allowed the promised company to opt for litigation. Subsection (2) provides that provision 2 (2) does not apply to the Unreasonable Contract Clauses Act 1977, which restricts the scope of disclaimers in cases of negligence, where the third party applies a clause and denounces the manufacturer`s negligence. Therefore, the third party cannot complain that such an exclusion clause is inappropriate. There are two categories of potential third parties that get this new right. When a third party chooses to apply the terms of the contract, it can do so against the procedure and has the right to dispose of any available quantity if it is a contracting party, for example. B a defined benefit.  An exception is the possibility of terminating and cancelling the contract, as the Committee on Laws held that « the third party should not be allowed to terminate the contract for violation, as this may be contrary to the wishes or interests of the promised person. »  Section 6 makes derogations from the scope of the act.
Although the law applies to standard contracts and contracts entered into through documents, it does not apply to contracts entered into as part of tradable instruments, foreign exchange or debt securities or contracts under the Companies Act 1985, such as Z.B.  The Act also excludes goods contracts across national borders. , which fall under international trade law and the terms of an employment contract that allow a third party to sue a worker.  These have been excluded for one in two reasons – either the third-party position in these types of contracts is too well established to be slightly modified, or there are public policy reasons that allow the participation of third parties, such as contracts. B work, is a bad idea.  Section 2 of the new Act provides that a non-contract may apply a contractual clause itself if (i) the contract expressly provides that he or (ii) a clause in the contract gives him an advantage, unless it appears that the parties did not provide for the clause to be applicable by the third party.