CHAR_A01.PDF, page 1-18 @ Normalize ( CHAR_A01.QXD )

• Secondly there is a question of whether legal intent exists, as Ursula
  and Victor are neighbours and there is a presumption of no legal intent
  in social and domestic arrangements, which can be extended to friends
  (see Chapter 4).


• The third issue is privity of contract, as Yolanda supplied Victor with
  the trees, not Ursula. The contractual relationship over the supply of the
  trees is therefore between Yolanda and Victor, and does not involve
  Ursula. Given the requirement for the contract to identify a person
  claiming a benefit under the recent Contracts (Rights of Third Parties)
  Act 1999, this is not likely to be of use to Yolanda.

Question 2

This is a good question to prompt you to revise the whole topic and develop

a critique of your own on the recent reform. Note the following points:

• The need for reform was clear – see the various reports and cases.


• The legislation only applies to those who would benefit as third parties,
  not those would have a burden imposed under a three-sided
  arrangement.


• The legislation only applies where there is clear evidence of intention
  to benefit a third party, e.g. where that party is identified by name.

Question 3

• See the answer to Question 2 – the answer to this one will be similar in
  content, until some cases have come before the courts.


• The effect on the doctrine is to lessen its importance in relation to those
  receiving a benefit, but to leave it intact regarding the imposition of a
  burden. Even regarding those receiving a benefit, there may be situations
  where a person cannot prove that the intention to bestow the benefit was
  clear at the time of contracting, and there may be difficulties proving
  identity. It is not clear how precise this will need to be – a matter for
  statutory interpretation. See comments on this in Chapter 9.

Question 4

• This is similar to Question 2. Explain the background to privity,
  covering (briefly) the basic rule, its difficulties and established
  exceptions and the attempts to avoid the problems.


• Outline the provisions of the Act and explain the reason for it. This will
  involve going back to the reason for the rule of privity (to protect the
  contract and avoid imposing a burden unfairly on a third party), and,

Answers guide 307

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