Abstract

The doctrine of privity has two main aspects. The first is that a third party is not to be burdened or prejudiced by a contract. This appears sound and wil not be examined further. The second aspect of the doctrine is controversial. A third party cannot take advantage ofa contract made by A and B for his benefit. The potential benefit to C can take two forms. A positive benefit is the right to some material advantage, such as money, property or services. A negative benefit consists in the conferring of an immunity. there is authority for the denial of both kinds of benefit to C. Tweddle u Atkinson and Dunlop u Selfridge established clearly that a third party does not have an ius quaesitum, tertio or active right. The House of Lords in Scruttons u Midland Silicones extended the privity rule so as to deny that C can take advantage of a negative benefit.

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