privity of contract

Question 1

rule of privity of contract

Answer 1

• only the parties to a contract are bound by it
• a third party cannot bring court action to enforce the contract
• Dunlop v Selfridge

Question 2

exceptions

Answer 2

• third party is expressly named
• contract states the third party can enforce the contract
• the contract confers a benefit on them (e.g a gift)
• contracts act 1999: s1