ABSTRACT

The first part of the doctrine, relating to the conferring of benefits, was the subject of major reform in the Contracts (Rights of Third Parties) Act 1999. This Act was based on the recommendations of the Law Commission Report No 242, Privity of Contract: Contracts for the Benefit of Third Parties (Cmnd 3329), and applies to contracts made on or after 11 May 2000. Although the old law may still be applicable to some contracts, most questions on privity will now require you to show an understanding of the new legislation. You may well be asked, however, whether the reform is satisfactory, and this will also require knowledge of the previous law. All of the questions and answers in this chapter touch on one or more aspects of the new legislation.