CONTRACT LAW REVIEW NOTES
PRIVITY OF CONTRACT
- Privity of contract is a legal doctrine that stipulates that only parties
who are directly involved in the contract can enforce its terms and
obligations.
- It means that a third party who is not a party to the contract cannot
enforce its terms or benefit from it.
Parties Privy to a Contract:
- The parties privy to a contract are the original parties who have
entered into the agreement.
- For example, in a contract between a buyer and a seller, only the
buyer and the seller are privy to the contract.
Third Party Rights:
- Generally, third parties do not have rights under a contract unless they
are specifically named in the contract or are intended beneficiaries.
- However, the Contracts (Rights of Third Parties) Act 1999 allows for
certain circumstances where third parties can enforce a contract.
Intended Beneficiaries:
- In some cases, a contract may be intended to benefit a third party,
known as an intended beneficiary.
PRIVITY OF CONTRACT
- Privity of contract is a legal doctrine that stipulates that only parties
who are directly involved in the contract can enforce its terms and
obligations.
- It means that a third party who is not a party to the contract cannot
enforce its terms or benefit from it.
Parties Privy to a Contract:
- The parties privy to a contract are the original parties who have
entered into the agreement.
- For example, in a contract between a buyer and a seller, only the
buyer and the seller are privy to the contract.
Third Party Rights:
- Generally, third parties do not have rights under a contract unless they
are specifically named in the contract or are intended beneficiaries.
- However, the Contracts (Rights of Third Parties) Act 1999 allows for
certain circumstances where third parties can enforce a contract.
Intended Beneficiaries:
- In some cases, a contract may be intended to benefit a third party,
known as an intended beneficiary.
