(1) A person may take
an immediate or other interest in land or other property, or the benefit of
any condition, right of entry, covenant or agreement over or respecting land
or other property, although he is not named as a party to the conveyance or
other instrument that relates to the land or property.
(2) Except in the case
of a conveyance or other instrument to which subsection (1) applies, where a
contract expressly in its terms purports to confer a benefit directly on a
person who is not named as a party to the contract, the contract is, subject
to subsection (3), enforceable by that person in his own name but —
(a) all
defences that would have been available to the defendant in an action or
proceeding in a court of competent jurisdiction to enforce the contract had
the plaintiff in the action or proceeding been named as a party to the
contract, shall be so available;
(b) each
person named as a party to the contract shall be joined as a party to the
action or proceeding; and
(c) such
defendant in the action or proceeding shall be entitled to enforce as against
such plaintiff, all the obligations that in the terms of the contract are
imposed on the plaintiff for the benefit of the defendant.
(3) Unless the
contract referred to in subsection (2) otherwise provides, the contract may be
cancelled or modified by the mutual consent of the persons named as parties
thereto at any time before the person referred to in that subsection has
adopted it either expressly or by conduct.