ExpertEasy1 markMultiple Choice
ACCA · Question 29 · Corporate and Business Law
Which statute significantly reformed the doctrine of privity of contract, allowing third parties to enforce contractual terms in certain circumstances?
Which statute significantly reformed the doctrine of privity of contract, allowing third parties to enforce contractual terms in certain circumstances?
Answer options:
A.
The Unfair Contract Terms Act 1977
B.
The Sale of Goods Act 1979
C.
The Contracts (Rights of Third Parties) Act 1999
D.
The Consumer Rights Act 2015
How to approach this question
Identify the specific legislation that altered the common law rule of privity.
Full Answer
C.The Contracts (Rights of Third Parties) Act 1999✓ Correct
The Contracts (Rights of Third Parties) Act 1999 created a major statutory exception to the doctrine of privity, allowing a third party to enforce a contract if the contract expressly says they can, or if a term purports to confer a benefit on them.
Common mistakes
Confusing this with consumer protection legislation.
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