The beneficiary may renounce a right conferred on it.

 

COMMENT

The scheme of this Section assumes that, absent contrary provision, the contract between promisor and promisee creates rights in the beneficiary at once, without any need for acceptance by the beneficiary.

 

Although the third party will usually welcome the benefit which the parties have conferred upon it, it cannot be forced to accept it. It follows that the third party may expressly or impliedly renounce the benefit.

 

However, once the beneficiary has done something that amounts to acceptance, it should not normally be entitled to renounce.

 

Illustration

 

On the facts given in the Illustration to Article 5.2.5, C, a sub-contractor, may not wish to take advantage of the insurance taken out by the main contractor because it already has relevant insurance in place (and it knows that there will be difficulties if there are two insurances covering the same risk). C is entitled to renounce.