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The Contracts (Rights of Third Parties) Act 1999 (c. 31) is an Act of the Parliament of the United Kingdom that significantly reformed the common law doctrine of privity and "thereby [removed] one of the most universally disliked and criticised blots on the legal landscape". [2]
With the passing of the Contracts (Rights of Third Parties) Act 1999 on 11 November 1999 the doctrine was significantly altered, and it now allows a third party to enforce the terms of a contract if the third party is specifically authorised to do so by the contract or if the contractual terms "purport to confer a benefit" on such third party.
Contracts (Rights of Third Parties) Act 1999. 1999 c. 31. 11 November 1999. An Act to make provision for the enforcement of contractual terms by third parties.
In addition, section 48 of the Insurance Contracts Act 1984 (Cth) allows third-party beneficiaries to enforce contracts of insurance. Although damages are the usual remedy for the breach of a contract for the benefit of a third party, if damages are inadequate, specific performance may be granted (Beswick v. Beswick [1968] AC 59).
However, the Contracts (Rights of Third Parties) Act 1999 introduced a number of allowances and exceptions for ius quaesitum tertio in English law. Other common-law countries are also making reforms in this area, though the United States is unique in abandoning privity early in the mid-19th century.
Finally, English law was amended by the Contracts (Rights of Third Parties) Act 1999, which allows non-party beneficiaries of a contract to enforce the contract, substantially modifying the doctrine. However, the doctrine has not been completely abolished.
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City of Westminster Act 1999; Contracts (Rights of Third Parties) Act 1999; E. Employment Relations Act 1999; European Parliamentary Elections Act 1999; F. Finance ...