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According to Section 1(5) of C(RTP)A, a Third Party Qualifying

Question 3

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According to section 1(5) of C(RTP) A, a third party qualifying under section 1 can enforce a term of the contract and claim 'any remedy that would have been available to him in an action for breach of contract if he had been a party to the contract'. Since the third party's rights are derivative of the promisee's, the starting point is that the scope of his claim should coincide with that of the promisee's. However, there are a number of exceptions to this starting point. Which of the following statements is false?


A) The promisor can rely on any counterclaim against the promisee against the third party's claim.
B) The promisor can rely on any counterclaim he already has against the third party's claim.
C) The third party cannot appeal to section 2(2) of the Unfair Contract Terms Act 1977 (UCTA) to defeat exemption clauses which exclude negligence liability causing loss or damage (other than personal injury or death) .
D) The third party cannot rely on the contract party's rights set out in the Law Reform (Frustrated Contracts) Act 1943 or the Misrepresentation Act 1967.

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