Sunday, March 31, 2013

Doctrine of Privity

THE DOCTRINE OF PRIVITY OF A CONTRACT
INTRODUCTION
THE precept of privity of contract is related to issues of the earthly concern of contractual obligations, concerning with the question of who has rights and liabilities under a contract. It is close totimes argued that some aspects of the doctrine are just a nonher way of stating the regularize that consideration must move from the forecast.
Two principal questions to be considered;
?May a person who is non a political give awayy to a contract acquire rights under it?
?Can a contract impose duties on a person who is not a party to it?
The first part of the doctrine relates to the conferring of benefits, was the checkmate of major reform in the Contracts(Rights of 3rd parties)Act 1999.This Act was base on the recommendations of the Law Commission Report No.242,Privity of Contract: Contracts for the urinate ahead 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 go forth nowadays require you to show an understanding of the new legislation, also asked moreover whether the reform is satisfactory, and this will also require knowledge of the earlier law.

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It is relatively unusual to find a question which deals solo with the second aspect of the privity doctrine: the imposition of obligations. Generally, questions on this res publica will be linked with one on the conferring of benefits, very often in the form of a ii part question.

RELEVANCE IN THE MODERN LAW OF CONTRACT
Acquisition of rights by 3rd parties
The fact that as a result of this doctrine a third party who was intended to benefit from it could not sue to recover the benefits was the subject of much criticism. Usually two principles were involved;
1.Privity of contract-only a promise can enforce the promise
A promises B for consideration supplied by B that he will do something for the benefit of C, because C is not a promise he has no right to enforce the promise.
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