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3.1 Privity of Contract – Introduction Welcome to the third lesson of this module guide – privity of contract! Privity of contract is a very nuanced doctrine, while there are no straight-jacket solutions, certain principles have evolved over time in common law and statutes, which attempt to provide a direction to the issue. As a general rule and consistent with the doctrine of privity, the burden of a contract is not imposed upon a third party because it is not a party to that contract. The Contracts (Rights of Third Parties) Act 1999 did not alter this basic position, as it relates to conferring benefit of contracts upon third parties and not imposing burdens. The doctrine of privity of contract is an indispensable rule in the law of contract. It is very important because it goes to the root of every contract case. That is, whether a person is actually a party to a contract or not. In this article, i will extensively discuss the doctrine of privity of contract and the exception to the doctrine.

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