Beswick v Beswick [1968] AC 58

Written By Nicolas Heyes

Court: House of Lords

Basic Facts : Mr. Beswick transferred his business to his nephew in exchange for a promise to pay an annuity to his wife after his death, but the nephew failed to make the payments.

Issue: Interpretation of s.56 of the Law of Property Act 1925.

Held: The House of Lords held that specific performance could be awarded in favor of a third party beneficiary of a contract, even though the third party could not personally enforce the contract.

  • (Lord Guest and Lord Upjohn):

    • Section 56: Only allows persons named or clearly intended in a contract to benefit from it. It does not broadly allow third parties to sue on a contract simply because it benefits them.

Nicolas Heyes
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