- Part (b) does not apply if on a proper construction of the contract it
appears that the parties did not intend the term to be enforceable by the
third party. - The third party must be expressly identified in the contract by name, as
a member of a class or as answering a particular description but need not
be in existence when the contract is entered into.
Remember that if a remedy is not available under the law of contract, one
may be available in a different way, for example under the law of tort.
Questions
1 Ursula’s neighbour,Victor, regularly cleans her windows, for which she pays him £10. On
one occasion whilst he is doing the work, Ursula mentions that she is worried about
her garden which is in need of maintenance.Victor replied that he will do some work
on it when he has the time.Two weeks later Ursula arrives home to find that Victor has
mowed the lawns, planted new trees in the garden and cleaned her windows. She is very
pleased and promises to pay him £70 for the work on the garden and the usual £10 for
cleaning the windows.
Ursula also receives a telephone call from Yolanda who supplied Victor with the trees
for Ursula’s garden.Yolanda requires payment of £30.
Advise Ursula whether she must pay Victor and Yolanda.
2 Critically evaluate the recent reform to the doctrine of privity.
3 ‘The third party rule prevents effect being given to the intentions of the contracting
parties, and can not be justified.’ Discuss this view of the doctrine of privity of contract
and consider how it has been reformed.
4 Critically evaluate the effect on the doctrine of privity of the Contracts (Rights of Third
Parties) Act 1999.
5 ‘The aim of recent legislation was to remedy the injustice of the third party rule.’ Explain
and discuss the development of the rules of privity of contract.
OCR 2002
Privity of contract 145