Privity of Contract Advice Online

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Privity of Contract Explained

The rule of Privity of Contract means that in general, a person who is not privy to a contract, that is, a third party, can neither sue nor be sued on that contract.

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Sample Questions

  • “… my business partner has recently passed away…I have decided to fold the business and retire… my former partners wife whilst going through her husbands personal effects found our business order book detailing several work contracts… she has demanded as her husbands beneficiary… that all contracts of work be completed or she will sue for compensation… can she do this…”

     

  • “…I run a franchised [delicatessen] …my parent company has been taken over… do I now have the right to re negotiate new terms of contract as the old one is now unenforceable…”

     

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