The Modification and Cancellation of the Contract in Favor of a Third Party

It is necessary to establish a third party rule in Chinese Contract Law.One of the most important issues is whether contracting parties can modify or rescind a contract as they normally do in a normal contract.Without a third party's consent,contracting parties' right of modification and cancellation must be restricted but should not be denied.Specific tests depend on the purposes to establish the third party rule and the characteristics of the contract in favor of a third party.The regulations about modification and cancellation of the contract will be a part of Chinese contract laws and they will be applied in accordance with the principle-specific laws are applied prior to general laws.