The Contracts (Rights of Third Parties) Bill, 2014, which was Gazetted in the Cayman Islands on 21 February 2014, has now been enacted by the Cayman Islands government and has passed into law.
The Contracts (Rights of Third Parties) Law, 2014 enables the parties to a contract to give persons who are not direct parties to that contract the ability to enforce rights expressly granted to them in the contract. This is anticipated to be particularly helpful to enable indemnities in fund documents in favour of third parties to be enforceable without the need for a separate agreement.
Please click on the following link to read the previous Walkers advisory on the new piece of legislation:
The Contracts (Rights of Third Parties) Law is intended to be an "opt in" regime similar to the United Kingdom. As with the English position, it will be necessary to ensure that all Cayman Islands governed contracts going forward expressly apply or dis-apply the Law depending on the intentions of the parties.