ABSTRACT

INTRODUCTION The doctrine of privity of contract is related to the issues of the creation of contractual obligations looked at in Chapters 1 and 2, in that it is concerned with the question of who has rights and liabilities under a contract. It is sometimes argued that some aspects of the doctrine are just another way of stating the rule that consideration must move from the promisee, and so questions may sometimes involve looking at both consideration and privity issues. More commonly, in the past, questions have tended to relate to the two sides of the basic privity doctrine, that is:

❖ that a person cannot sue on a contract made for their benefit if they were not a party to it; and

❖ that a person cannot have obligations imposed on them by a contract to which they are not a party.