Privity of Contract

Question 1

Under Contracts (Rights of Third Parties) Act 1999, a third party may enforce a term of a contract if the contract does which one of 2 things?

Answer 1

1. Expressly provides that the 3rd party may enforce the term; or
2. Confers a benefit on the third party with the apparent intent to allow them to enforce it

Question 2

Under C(RTP)A 1999, the ________ does not become enforceable against the third party

Answer 2

obligation

Question 3

Name two forms of documents which are excluded from the C(RTP)A 1999

Answer 3

1. Employment contracts
2. Articles of Association of a company

Question 4

Under C(RTP)A 1999, the third party can be specifically _____ or within a described ______

Answer 4

named, group

Question 5

If a third party has rights under a contract, the parties can’t change the contract to the detriment of the third party if:

1. They have _____ to the term benefitting them
2. They have _____ on the term benefitting him
3. Promisor is ______ of the reliance

Answer 5

agreed, relied, aware

Question 6

If a guarantor has to pay debts of another under a guarantee, they _______ (or substitute) the rights of the person whose debt they paid

Answer 6

subrogate