ExpertEasy1 markMultiple Choice
ACCA · Question 29 · Syllabus B: The law of obligations
The Contracts (Rights of Third Parties) Act 1999 provides an exception to which fundamental common law doctrine?
The Contracts (Rights of Third Parties) Act 1999 provides an exception to which fundamental common law doctrine?
Answer options:
A.
Consideration
B.
Promissory estoppel
C.
Privity of contract
D.
Frustration
How to approach this question
Identify the doctrine that prevents non-parties from enforcing a contract.
Full Answer
C.Privity of contract✓ Correct
The doctrine of privity of contract dictates that a contract cannot confer rights or impose obligations on anyone who is not a party to it. The Contracts (Rights of Third Parties) Act 1999 created a statutory exception, allowing third parties to enforce a contract if it expressly provides they may, or if it purports to confer a benefit on them.
Common mistakes
Confusing privity with consideration.
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