Privity of Contract Flashcards
1
Q
What is the principle of POC?
A
The principle of privity of contracts means only those who are parties to a contract are bound by it and can benefit from it (Dunlop).
2
Q
What does the Contracts (Rights of Third Parties) Act 1999 say regarding POC?
A
S1 of the Contracts (Rights of Third Parties) Act 1999: This allows a 3rd party to enforce the contract against either or both of the actual parties if:
1) The 3rd Party is expressly identified.
2) The contract expressly provides that the third party may enforce the contract, or,
3) S3 allows a third party to rely on any defense or valid exclusion clause that was available to the original contracting party.
