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(p. 167) Part III Privity 

(p. 167) Part III Privity
Author(s):

Mindy Chen-Wishart

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date: 23 August 2019

A contract alters the rights and liabilities of the contract parties: they are said to be privy to the contract. But what about someone who is not a contract party (a ‘third party’)? This chapter addresses the following questions: (1) What are the justifications for the general rule that only contract parties can sue on a contract? (2) What rights of enforcement does the Contract (Rights of Third Parties) Act 1999 confer on a third party? (3) What is the impact of the 1999 Act on the requirement that a contract claimant must have given consideration? (4) To what extent can a promisee enforce a contract for the benefit of a third party? (5) Aside from the Contract (Rights of Third Parties) Act 1999, what legal avenues exist for third parties to enforce promises made for their benefit? (6) When and how does a contract bind third parties?

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