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Discuss the significant features of the Contract (Rights of Third Parties) Act. Is its Enactment to be Welcomed?
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Discuss the significant features of the Contract (Rights of Third Parties) Act. Is its Enactment to be Welcomed? It is important in the evaluation of any new development in the law to look at the situation that was in force previously. Only then is it possible to analyse the resultant changes and, specifically, to evaluate the current position. At common law it has been generally accepted by the courts (although there is some objection to be found in academic writings such as Flannagan's article 'End of an Erra (Error)') that there is a doctrine of privity of contract. This doctrine states firstly that a contract cannot confer rights on anyone except a party to it and secondly that it cannot impose liabilities on anyone except a party to it. These are referred to as the 'benefit' and the 'burden' side of the doctrine respectively. The foundation of this doctrine is generally given to...
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