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Part V Third Parties, 20 Intervention of Third Party Rights

Dominic O’Sullivan

From: The Law of Rescission (3rd Edition)

Dominic O'Sullivan KC, Steven Elliott KC, Rafal Zakrzewski

From: Oxford Legal Research Library (http://olrl.ouplaw.com). (c) Oxford University Press, 2023. All Rights Reserved.date: 21 April 2024

Third parties — Interpretation of contract — Termination/unwinding of contract — Rights of third party and insurance

This chapter examines the intervention and protection provided by third-party rights. It explains how rescission will not be barred if relief will be made in a way that does not affect the rights of innocent third parties. One of the main bars to rescission is the intervention of third-party rights, but only a few cases have invoked the bar successfully. The third-party rights bar corresponds to a small collection of cases decided by the common law courts involving the sales of goods produced by the purchaser’s fraud. A bar becomes unnecessary to the protection of the rights of innocent purchasers and recognizing it would only provide fraudulent purchasers protection.

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