Consultation Paper Privity of Contract


Legal principles which have the effect of allowing third parties to enforce rights



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Legal principles which have the effect of allowing third parties to enforce rights

1.8 As illustrated in the above examples, strict adherence to the privity doctrine can prove artificial and contrary to the parties' intention, and can lead to injustice and inconvenience. There are, however, circumstances in which the doctrine does not apply, either because of supervening principles of common law or because of specific statutory provisions which allow a third party to enforce a right conferred on him by the contracting parties. The following paragraphs will first explain the principles at common law, followed by those in statutes. The merits and limits of employing these common law and statutory principles as options for reforming the privity doctrine are discussed under "Option 1" and "Option 2" respectively in Chapter 3 where other possible options for reform are also considered.







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