Privity of Contract

Question 1

Who can sue in a contract?

Answer 1

Only the parties to the contract, and those who come under statutory and common law exemptions

Question 2

What are the common law exemptions?

Answer 2

Insurance contracts
Assigned contracts
Collateral contracts
Agency situations
Trustee-Beneficiary situations

Question 3

What is the statutory exemption?

Answer 3

Third parties who are expressly permitted to do so under the contract, or those who are conferred a benefit in the contract and the contract intends for them to be able enforce contractual terms.

Exceptions:
1. In employment contracts
2. In articles of associations
3. Where the statutory exemption is explicitly contracted out of.