Privity of Contract

The doctrine of privity of contract prevents a party who is not a contracting party from enforcing a contract.

The doctrine has been eroded by the operation of the Contracts (Rights of Third Parties) Act 1999. This allows a third party to enforce the terms of a contract in particular circumstances.

The doctrine of privity can be contrasted with the doctrine of agency where an agent contracts on behalf of its principal. This creates a contract between the principal and the third party with whom the agent contracted.