Section 3 Contracting parties' freedom to alter third party's entitlementI1

An undertaking contained in a contract which has given rise to a third-party right may be cancelled or modified by the contracting parties.

Nothing in this Act precludes a contract from providing that an undertaking, which is contained in the contract and in relation to which a third-party right has arisen, will not be cancelled or modified by the contracting parties.

Subsection (1) is subject to sections 4 to 6.