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'The Contracts (Rights of Third Parties) Act 1999 has replaced one bad rule with another.' Discuss.
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CONTRACT WEEK 5 Elizabeth Harwood Q) 'The Contracts (Rights of Third Parties) Act 1999 has replaced one bad rule with another.' Discuss. The 1999 Contracts (Rights of Third Parties) Act introduced a 'wide-ranging exception' to the doctrine of privity, allowing third parties to enforce contract terms in certain situations. This reform followed widespread criticism of the doctrine and although the provisions in the Act have been met with concern that it will create more problems than it will solve, it seems that overall it has the potential to make a positive contribution to Contract Law. There were many perceived problems with the old rule that led to the Law Commission's recommendations for action. It is explained in the Report that there are two aspects to the doctrine of privity; a stranger to a contract cannot have burdens imposed on them and a stranger to a contract cannot enforce the contract, even...
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