Common use of Distinction Clause in Contracts

Distinction. A release agreement which extinguishes rights, is distinct from a pactum de non pe- 3 tendum, i.e. an undertaking not to pursue certain rights for a certain time.12 Article 5.2.1 (Contracts in favour of third parties) (1) The parties (the “promisor” and the “promisee”) may confer by express or im- plied agreement a right on a third party (the “beneficiary”). (2) The existence and content of the beneficiary’s right against the promisor are de- termined by the agreement of the parties and are subject to any conditions or other limitations under the agreement. A. Concentration on Contracts in Favour of Third Parties 2.1 goes beyond the ‘princi- 1 ple of relativity of contracts’ (Art. 1.3 sentence 1).2 Para. 1 documents,3 at the top of ▇▇▇-