Privity (Sections)

Question 1

1. Section 1(1)…

Answer 1

Section 1(1) of the Contracts (Rights of Third Parties) Act 1999 which gives a third party the right to enforce the contract where it is intended they will benefit from the contract.

Question 2

2. Section 1(1)(a) & Section 1(1)(b)

Answer 2

This could be expressly stated (S1(1)(a)), or interpreted (S1(1)(b)) from the contract (Nisshin v Cleaves).

Question 3

3. Section 1(3)…

Answer 3

S1(3) states that the third party must be identified in the contract either by name, as a member of a class, or as answering a particular description. If they do not, then C(RTP) will not be available.

Question 4

4. Section 1(2)…

Answer 4

S1(2) states that a third party cannot enforce S1(1)(b) if parties did not intend them to (Prudential v Ayers).

Question 5

5. Section 2 & 3…

Answer 5

Section 2 states that where a third party has a right under Section 1, the parties to the contract may not manipulate the contract in any way which means the third party cannot then enforce the contract.

Section 3 allows a contracting party to have a defence against the third party.