Q&As

How can a third party enforce rights under a deed to which it is not a party?

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Published on LexisPSL on 04/04/2018

The following Commercial Q&A provides comprehensive and up to date legal information covering:

  • How can a third party enforce rights under a deed to which it is not a party?
  • Privity of contract
  • Exceptions to the doctrine of privity of contract
  • Providing for a third party right within a contract

How can a third party enforce rights under a deed to which it is not a party?

Privity of contract

'Privity of contract' is a common law doctrine, which provides that you cannot either:

  1. enforce the benefit of, or

  2. be liable for any obligation under

a contract to which you are not a party.

Therefore, if an individual legal entity is not a party to a contract (ie they are a third party) then they cannot sue or be sued under that contract.

In general terms, the doctrine of privity of contract means that a contract between A and B cannot impose a positive duty on C to render the performance specified in the contract. However, it is possible that a contract between A and B can can provide a benefit for C.

Exceptions to the doctrine of privity of contract

There are numerous equitable exceptions to the doctrine of privity of

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