Which statement about the Contracts (Rights of Third Parties) Act 1999 is correct?

Answer and explanation

Correct answer: A. A third party may enforce a term if the contract so provides or purports to benefit him, unless not intended

  1. Step 1: Section 1 of the Act relaxes the privity rule.
  2. Step 2: The third party must be identified by name, class or description.
Answer
A third party may enforce a term if the contract so provides or purports to benefit him, unless not intended.
Why not the others: The right is not unlimited; consideration from the third party is not required; a third party may rely on an exclusion clause under s1(6).

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