THEDOCTRI

NEOFPRI
VITYTOCONTRACT

MWAKI
SIKIMWAKI
SIKIEDWARDS

I
NTRODUCTI
ON

Thea ss
e r
ti
ont hatonlypa rt
ie
st ocontr
actcansueorbeingsuedunde ritiscommonl yknowna s
doctr
ineofpri vi
tyofc ontra
ctandl a
rgelyisacommo nlawprincipleorme chanismbywhi ch
contr
actualri
ghtsa ndliabil
it
iesareli
mitedtothecontr
acti
ngparties.Thel ogicbehindthisistha
t
onlycontract
ingpa rt
ieshavea ccept
edthetermsandresponsi
bil
it
i e
ss t
ipulat
edi ntheagre
e ment.
Basicruleisthatifthereisnopr i
vit
ytoc ont
ract
,the
reisnorighttos uea ndc annotbesued.

Thisdoct
rineist
ot heef
fec
tthatonl
yape rs
onwhoi spartyt
oac ontr
actcans
ueorbesuedonit
.
Itmeansthatonl
yape rs
onwhoha sprovidedcons
ider
ati
ontoapr omisecans
ueorbesuedonit
andital
some ansthatast
range
rtoconsider
ati
oncannotsueorbes ue
de ve
nift
hecont
rac
twa s
i
ntendedtobenefi
thim.

Pri
vit
yofc ont
rac
tisthere
la t
ionwhichexi
stsbetweenthepart
iestoacontr
a c
twhi che
nableone
pers
ontosueanotheronit
. Theprivit
yofcontr
actpri
ncipl
eistotheef
fectthatonlypar
ti
estoa
contr
actac
quir
esTa ndincurliabi
lit
yunde
ri t
.Ass uc
has t
rangertoacontr
a ctca
nnotsueorbe
suedonit.

DEVELOPMENTOFDOCTRI
NEOFPRI
VITYTOCONTRACTI
NENGLAND

Thedoctr
ineofpri
vit
ytocontr
actt
hati
sonlypar
ti
estocontr
actc
ansueorbesuedundert
he
cont
rac
tandnotthethi
rdpart
y,inEngl
anddeve
lope
dt hr
oughanumberofcour
tsdeci
si
onsasi
t
shownbelow:-

I
nTweddl
evAt ki
nson,Inthisca
setwoc
oupl
esint
endedtogetmarr
iage
;befor
ethemarri
age
t
hepa
rent
stha
tarefat
herofthehusb
anda
ndfat
herofthewif
ea gr
eedtha
tthefa
theroft
hewife
s
houldpay£290tothehusbanda ndt
h er
ealf
atherwi
llonl
ypa y£100.Thispr
omisewasnot
f
ulf
ill
edbythefat
herofawi f
es i
ncehepaidonly£90.There
forethehus
bandins
ti
tut
edacas
e
a
gainstt
hefat
herofthewife
.Thei ss
uebefor
ethecourtwaswhethert
hehusba
ndofawi f
ewho
i
snotthepa
rtytothecont
ractcouldsueonit
.

Itwa shel
dt hatthehus bandhasnor i
ghtt osuebe causeheisnotapa rtytoac ontr
a ct
.Thi sis
becausethe reise xi
stenceofrelat
ionshipbetwe entwof at
hersthatist
hef at
he rofthehus band
andthef at
he rofthewi fe.Thehusbandi sregardedasabe nefi
ciaryoras t
ranger.Noa ctc oul
dbe
broughttot hec ourtbyt hepart
ywhoi sstra
nge rtothecontra
ct.Alsoitisestabli
shedprinc i
ple
thatnostrange rtothec onside
rat
ionc antakea dvantageofthec ont
ractal
thoughma deforh is
benefit
s.Itisi mportanttonotethatinthisca s
et heplai
nti
ffwa sbothstra
nge rtocontractand
consider
ation.

Simi l
arly,thea boveposit
ionwa saffi
rme di nthecas eofDunl opPneuma ti
cTyr eCo.,Ltdv
Selfri
dge&Co. ,Ltd,whe rethea ppell
ant sinthisca se(Dunlop)whowa sma nufact
urer
so f
mot orcartyress ol
dsomeoft heTyr estoonDe wandCo,wi t
hanagreeme ntthatthes
etyreswi l
l
notbes oldbe lowt heli
stpric
e .De w&Coont hei
rs i
des oldsomeofthet yr
est otheres
po ndent
s
(Selfr
idge &Co. )wit
ha nagreeme ntthatther esponde ntsshal
lobser
vec ondit
ionsa st
opr i
cea nd
theresponde ntsa l
sopromisedt hattheywoul dpayt hea ppell
ant
sasumof$5f oreverytyr
es old
belowt hel i
stpr ic
e.Theresponde ntssolds omeoft yr esbelowtheli
stpriceandt heappell
ants
broughta na ct
iona gai
nstthem( r
esponde nts)torecove rdama ge
sforthebr e
ac h.

TheHous eofLordsheldthat:Thepl
ainti
ffcoul
dnotma i
nta
inanacti
onagai
nstt
herespondent
s
becausetherewasnoc ontrac
tbe t
weenthetwopart
ies
.Itwasfurt
herobse
rve
dthatevenifiti
s
ta
kent hatDe w&c o.we r
ea cti
onastherewasnoconsi
derat
ionbet
we e
nthetwoandthe
re
sponde ntssi
ncethewhol eofpurch
asepricewaspai
dbySe lf
ri
dge&Co.t oDew&Co.The ir
Lordshipreasone
dt hus
:

“…Inthel
awofEngl andc ert
ainpri
ncipl
esa r
efundamental
.Oneisthatonl
yape r
sonwhoi sa
part
ytoacontrac
tc a
ns ueorbes uedonit.OurlawknowsnothingofaJ usqua
esit
umt er
ti
o
ari
si
ngbywa yofc ontr
act.Sucharightma ybeconfer
redbywa yofpropert
yasforexample
underatr
ustbutcannotbec onfe
rre
donas t
rangert
oac ont
rac
tasar i
ghttoenf
orcethecontr
act
inpers
onam”.
Thea bovequot at
ioni stot hee ffe
ctth
a tinEnglandonl ypeoplewhoa r
epa rttothec ontrac
tc a
n
sueunde ritandobt ai
ns omer i
ghtst
he r
etoa ndnotat hir
dpa rt
ywhoha ven’tfurnished
consi
de r
a t
ionorbe ingt hep a r
tytocontract
,thoughs ome t
imesbyawa yoft rustora nyother
me a
nsas t
rangertoc ontr actcansueun derthecontractandobtainsomer i
ght sthereto.Thet e
rm
Jusquaesitumt er
tiothe reforeme anstherightofat hi
rdpa r
tytoenforceac ontracttowhi chhei s
notapa r
ty.Howe vers uc hstrangert
oac ontractcannotsueoni tinhisownna mee ve rthoughhe
ist
hebe neficia
ryoft hea rr
a ngementthatishec a
nnote nforc
ethec ontr
actinpe rsona m.

Ye taga i
ni nthecaseofBe swickvBe s
wi ck,wherethede ceasedagr
eedwi ththec ompanythat
thatthec ompa nyshouldemployhi masac onsult
antanda lsothecompanys houldpa yhiswife
E5pe rwe ekifhedies,sowhe nhediesthewi f
eclaimf oritintwogrounds,firs
tlysheisa
beneficiaryofE5a nds ec
on dl
ys hewasa dmini
str
atorofhe rhusba
nde st
ate
.I twa sheldtha
tas
admini st
ratorthewidowc ouldobtai
nanor derofspecifi
cpe rf
ormancewhic hwoul de nf
orc
ethe
provisionint hecontr
actforbenefi
tbutthati
nhe rpersonalcapaci
tyforarr
ea rsshehadnoc ause
ofa c
tion.

THEPOSI
TIONOFTANZANI
AASTODOCTRI
NEOFPRI
VITYOFCONTRACT

Theafor
esaidpos
it
i oninEngla
ndisthesamea sthatofTanzania
;howe verIntheLawof
Cont
ractActissi
lentonthepri
nci
pleofprivi
tyofcontract
.Thoughs ec
tion2(1)(d)oft
heLaw
ofContr
actAct,per mit
sathi
rdper
sontofurnishconside
rat
ionforthepromiseebutdoes
n’t
al
lowhimt osueont hecont
rac
tonthegroundthathef ur
nis
he dconsi
derat
ion.

Theappli
cabil
ityoft
hedoc
tri
neofpri
vit
ytocontra
c tt
hatisonl
ypa
rti
estocont
rac
tcansueorbe
sue
dunde rit
,isevi
denc
edbylooki
ngondiff
erentcourt
’sdeci
si
onr
egardi
ngpri
vit
ytocontr
act
asfol
lows:-

Inthec aseofBur ns&Bl a neLi mit

edv.Uni t
edCons t
ructionCompa nyLimi t
ed,Pl aintif
fsued
forgoodss oldandde livereda nds er
vicesrende red.Pl
aintiffha dactedasas ubc ont
ractorto
defendant,thema incont r
a ctor,onac o nst
ructionpr oj
ect.De fendantdidnotde nyt hatitwa s
li
ableunde rthec ontr
ac t
.Howe ver,defendanta ll
egedtha tplainti
ff
’sr e
coverys houldber educed
bythea mountofe xpense swhi c hdefendantha di ncur
redi nc orrec
tingcertai
nde f
ectsa ndal
so
bythea mo untofas e
ttleme ntwhi chde fendantha dma dewi t
hat hirdpa r
ty,thec ompa nyfor
whicht hebui l
dingwa sbe ingc onstr
ucted,be c
a useofothe rde fec
tsinma teri
a l
swhi chpl ai
nti
ff
hads uppli
ed .I
twa she ldthe rewa snopr i
vityofc ontr
actbe t
we enplaint
iffandt hethirdparty
withwhi chde fe
nda ntma det hes e
ttl
eme nt,nordi ddefenda ntexpendf undstoc orrectthose
defec
tsi
nres
pectofwhi
chthes
ett
lementwa
sma
de.The
ref
ore
,thea
mountoft
hes
ett
le
ment
shoul
dnotbede
duc t
edf
rompla
int
iff
s.

InJ umaGa ragevCo- Ope ra

tivea ndRur alDe velopme ntBa nk,Thi sca seisa boutPr ivit
yof
Cont ract
,andi ssuewa swhe therRes ponde ntinstructe dt oactfora ninsur ancec orpora t
ion,
whe thersuchi nstruc t
ionma kesther esponde nta na ge ntofAge nc y-Age nta ctingf orPr incipal
andwhe thert hea ge ntma ys uei nhisownna me .Thef actofthisc asei stha t
,ther esponde nt
owne damot orve hi cl
ewi t
hRe gis
trati
onNumbe rSU770whi chwa sins uredwi ththeNa t
ional
InsuranceCor por ation( NIC) .Theve hiclewa sinvol ve dina na ccident,whi c
hma deNI Cl iabl
e
foritsrepair.NI Ct ookt hemot orveh i
clet othea ppe llantforr epairsa ndl ateron,whe nt he
appe l
lantdela yedt oc ompl e
tet hewor k,NI Ci nst
ruc tedt heresponde nttof ollowupt hema tt
er
witht hea p
pe llant.Af te rcompl et
iont her esponde nts uedt hea ppe ll
antf orge ne ralande xemplary
dama gesa mount ingt oTZS564000 0f orlos sofus eoft hemot orve hicle,andaf urthers umof
TZS. 78200be i
ngt hec ostofr epl
acings omepa r
tsmi ssingfromt heve hi cl
ea tt het i
met he
respondentt ookde l
ive ryofthemot orve hicle.TheHi ghCour ta llowe dt hec laimofe xemp lar
y
dama ges,he nc ethi sappe al.

Thecourthe l
dthat
,thefa
ctthatNI
Ci nst
ruct
edthere
spondenttof
oll
owupthema t
terwi
ththe
appe
lla
nta ndthati
t,NIC,wouldberesponsi
blef
orexpens
e sdi
dnotmeante
rminat
ionoft
he
cont
rac
tbe tweenNI Candtheappe
lla
nt;there
sponde
ntwa snotpa
rtyt
othecont
rac
twiththe
appe
lla
ntbutme r
elyanagentofNIC.

Howe ver
,thedoc
tri
neofprivi
tytocont
ractinTanz
a ni
aisusedwit
hc e
rta
inl
imi
tat
ions,ast
he
doct
rinei
snormall
ynotimposedina gr
eementsorcont
ract
sthatf
all
sunderc
ust
oma r
yl a
wsand
thi
sisevidenc
edbythefol
lowingcourt
sde c
isi
ons:
-

InEphr ai
mObongov.Na f
taelOkeyo,wherebythedefendant
,al orryowne r,use
dt ocol
lec
t
cassavafromplai
nti
ffforse
lli
ng.Ononeoccasi
on,hi
slor r
ydrivera ndt urnboywe ntt
oplai
nti
ff
tocollec
ts omebagsofcas
sava.Pla
int
if
fref
usedtodeli
verthegoods ,dema ndingthatt
heyfir
st
produceso meemptycassa
vaba gswhi
chtheyhadevidentl
ytakena not herday,ors omemoney.

Theyretur
nedtode
fendant
’swi
fe,whogavethe
m24ba gsandT.shs
.190/-
,ands e
ntanot
pr
omisingthate
ver
ythi
ngwouldbet a
kencar
eofwhenherhusbandret
urne
df romajour
ney.
Pl
aint
if
fr e
cei
vednomoremoney,a ndsue
dinPrima
ryCourtfort
hevalueofthecass
avahehad
giventhem,a ndfors omeothere mptyba gsnotret
urned,les
st hemoneya ndba gsrecei
ve d.The
PrimaryCour theldthatsi
nc ethetransacti
onleadi
ngtot hedispute
swasbe t
we enpla i
nti
ffa nd
thedefendant’
swi fetheproperpa r
tytot hesuitwasthedefendant’
swifeandnott hede f
en dant
.
Ont hatgroundhedi smiss
e dthesuit.Thec asewentona ppealtotheDist
ric
tc ourtandthe nto
theHighCour t
.SeatonJobs ervedthatthec a
seinvolv
e danissueofpri
vityofc ontr
a c
t,a
contra
ctrathersubtleandtechnicalpointwhich,perha
psPr i
ma r
yCourtcouldn’tdealwith.He
said.

“
…I ns
ui t
sbet
weenAfric
anslivingwithinaloca
lc ommunit
ya nddoingbusine
ssamongs t
t
hemselvesonabasi
softrus
t,Ic ons
ideritwoul
dnotbeint heint
ere
s t
sofjust
icet
oi mport
t
echni
calnoti
onsofpri
vit
yofc ontra
ctandothersuchnot
ions,unl
essclea
rlyrequi
redbythela
w
t
odos o…”

Thes amepos i
tionwa sr eflectedi nthec aseofBur ns&Bl aneLimi t
edv.Uni tedCons t
ructi
on
Compa nyLi mited,Pla inti
ffs uedf orgoodss olda ndde l
iveredands ervice
sr endere d.Pla
inti
ff
hada ct
e dasas ubcontra ctort ode fendant,thema incontract
or,onac ons t
ructionpr oject
.
Defenda ntdidnotde nyt hatitwa sliabl
eunde rthec ontr
act.Howe ver,defenda ntallegedthat
pla
intif
f’srecove r
ys houl dber educe dbyt hea mountofe xpenseswhi chde f
e ndantha dincurred
incorrecti
ngc ertai
nde f ectsa nda ls
ob ythea mounto fase t
tl
eme ntwhi chde fendantha dma de
withat hir
dpa rty,thec ompa nyf orwhi cht hebui l
dingwa sbeingc ons t
ructed,be c
a useofo t
her
defect
si nma t
eria
lswhi c hpla inti
ffha dsuppl i
e d.Itwa sheldthatthe rewa snopr i
vityofc ontr
act
bet
we enpl ainti
ffandt het hirdpa rtywi thwhi chde f
endantma det hes ett
leme nt,nordi d
defendantexpe ndfundst oc or r
ectthos ede fe
c t
si nrespectofwhi cht hes et
tl
e me ntwa sma de.
Therefore,thea mountoft hes et
tleme ntshouldnotbede duc t
edf r
ompl ai
nti
f f’
sCl aim.

Fromtheabovecasesi
tisr
easonablet
oproposet
hatinTa nza
niaa l
thoughas
tra
ngertoa
consi
dera
tionmaysueandrecoveronthebasi
sofsect
ion2(1)doft heLawofContrac
tActs
o
longasheisapar
tytothecontr
act.Astr
angert
oac ontr
actcannotsueoniti
nhisownname
evert
houghheisthebenef
ici
aryofthearr
angementorthathefurni
shedcons
ider
ati
on.

EXCEPTI
ONSTOTHEDOCTRI
NEOFPRI
VITYOFCONTRACT

Liketheposit
ionofEnglandwhichall
owsathir
dpa rtywhoi snotapart
ytocontr
acttosue
underit
,thepos i
ti
onist
hes a
mea l
soinTanzani
aa sthe r
ecerta
inbranc
hesoft
helawi n
Tanzaniaal
lowat hir
dpartybene
fic
iar
ytosueont hec ontr
acti
nhisownna me.Thosecont
rac
ts
whichallo
wat hi
rdpart
ytosueonhismaneincludethef ol
lowing:
Cont
rac
tre
lat
ingt
otr
ust

Whereatrus
thasbee
nc r
e a
tedandprovedthe
nt hebenefi
ciar
y( t
hir
dpart
y)ma ysueonthe
cont
rac
tinhisownname.Itmustbeprovedtothes a
tis
fact
ionofthecour
tthatt
rustwascr
eat
ed.
Oncetr
usthasbee
nprovedthenthethi
rdpart
yc ansuethepromissor
ytoenforc
ethecontr
act
andbecomes
,asgener
alrul
ee nt
it
ledtot
hebene fi
tsundert
hec ont
ract
.

At hirdpartycane nfor
ceac ontr
a ct
,ifi
tc a
nbee s
tabl
ishe
dthatthepromiseinte
ndedtocreat
ea
trust
.“At rusti
sa nobligat
ion,enforcea
bleinequi
ty,bywhichape r
son,thetrus
tee
,holds
propertyonbe halfofanother,t
hebe nefi
ciar
y”.Thelawoftrust
sgivesthir
dpa r
tybenefi
cia
ry
therighttoa ct
iona gai
nstpromisorsnon-per
for
ma nce
.

Inapracti
calcontext,t
hepromise(tr
uste
e)ont heins
ist
enc
ebythet hi
rdpar
ty(benef
ici
ary)t
akes
act
ionagainstt
hepr omisori
nc as
eofbr ea
c h.Therecanbenotr
ustinc a
set
hereisnopromise
orpropert
ythatthetrust
eeholdsforthebenefi
ciar
y.Est
abl
ishmentofint
ent
ionoftr
ustisver
y
importa
ntinthelawoft rust
.

InTanzani
aUnionofI ndust
ria
landComme rcia
lWor ker
s[TUCO]a tMbeyaCementComp any
LtdvMbe yaCeme ntCompa nyLtdandNa t
ionalI
nsura
nc e
sCorpor
ati
on,int
hisc
asetheaction
basedontr
ustdeedandt hei
ssuewaswhetherplai
nti
ffcansueontr
ustde
edtowhichheisnot
part
yandwhe t
herthetrustr
ulesa
ppli
cabl
e.

Thef actofthecaseist hat

, t
heplaint
ifff
iledas uitagai
nstthedefendantsj
ointl
y,f ora mong
otherreli
ef,aspeci
ficpe rf
ormanc eofat rus
tde ed.Thebasicofthes ui
twa sthet
r us tdee
dr ul
es
andr e
gulationforMbe yaCe mentCompa nygroups ta
ffendowme nta s
surancesche mewhi ch
wa sannexedt opla
int.Thec ounselsforde f
endantsrais
edapr el
imina r
yobjecti
onf orplai
ntif
f
hadnol ocuss t
andtoi nsti
tut
ethes ui
te i
therforlackoflegalst
atusorba se
dont rus tdeed.

I
twa shel
dthatal
thoughthepla
int
if
funioniscapa
bleofsui
ngandbeingsue
d,itcanonlydoso
i
ftheall
egedwrongfulac
tswe r
ecommi t
tedaga
insti
t.I
t’
sfore
achforeac
hindivi
dualemp l
oye
e
t
os uet
hedefe
ndantsforthei
rri
ght
su ndert
hetr
ustdeedandgr
oupendowme ntsc
heme .

Ne
got
iabl
eins
trume
nt

TheBillofExcha ngeActundersect
ion38( a)empowersaholderofabil
ltosueoni ti
nhis
ownname .Ahol derisde
fine
dunders ec
tion2oftheBillofExchangeActtha
t"holder"means
thepa
ye eorendor s
eeofabil
lornotethatisinpos
sess
ionofit,orthebea
rert
here
of.Aho lder
ma ys
uea nypersonwhoses i
gnat
ureappea r
sonthebil
lnotnecessari
lyt
heimmediatepart
y.
Ther
efor
ebyclos
elyobser
vingtheaboveprovis
ionit
’sc
lea
rtha
tsuc
hpr
ovi
si
onpr
ovi
desa
n
exc
epti
ontot
hegeneralr
uleofpri
vityofcontr
act.

Tr
ans
ferofl
ande
dpr
ope
rty

Ape r
sonwhobuyspropert
ywithnot
ic
etha
tthese
ll
erorowneroft
hel
andi
sboundbycert
ain
obli
gat
ionsc
reat
edbyac ovena
ntaf
fec
ti
ngthel
andsha
llbeboundbyt
hemeve
nthoughhewas
notapart
ytothecove
nant.

Cont
rac
tre
lat
ingt
othel
awofa
genc
y

Anagentcant
akeal egalact
ionandrecove
rdama gesfort
helos
se ndure
dbyhispri
nci
pa l
.The
doc
tri
neofagencygivessuchright
sinabusines
ss e
tti
ng.“Agencyisthefi
duci
aryr
elat
ionshi
p
…t
heprinc
ipa
l'scontr
ol,andtheagentmanif
est
sa s
sentorot
herwiseconse
ntss
otoact.

Unde
rpa r
tXoftheLawofCont
rac
tActdeal
swithcont
rac
tre
lat
ingt
oanage
ncy.The
rea
re
pr
ovi
sionsde
ali
ngwit
htheef
fec
tofage
ncyoncont
ract
switht
hir
dper
sons
.

Unde rsecti
o n178oft heLa wofCont ractAc te xpress l
yprovide sthat:Contract
se nteredinto
thr
ougha na gent,andobl igationsa risi
ngf roma ctsdonebya na gent,ma ybee nforcedi nthe
samema nner ,andwi l
lha vet hes a
mel e galcons equenc esasifthec ontractshadbee ne nter
ed
int
oa ndt hea ct
sdonebyt hepr incipalinpe r
son.Age ncycana riseinanumbe rofwa ysbutone
thatgivesprobl emswi tht hec onc eptofpr i
vityofc ontracti
sthec aseoftheundi sc
lose dprinc
ipal
.
Thisa ri
seswhe rethea gentdoe s n’
tdi s
c l
oset hathei sa ct
ingonbe halfoftheprinciplewhe nhe
entersintothec ontractwi ththet hirdpa rt
y,buts impl yc ont
ractsinhi sna me.Inthissituati
onit
hasbe enhe l
dt ha twhent hea ge ncyi sdisclosed,thet hirdpar
tyma ye lecttosuee i
thert heagent
orprincipala nde it
hera gencyorpr incipala l
soma ys uethethirdpa rty.

Cont
rac
tba
sedoni
nsur
anc
e

Thistypeofc ont
ractnorma l
lyfoundundertheRoa dTr af
fi
cAc t,wherebyt hethi
rdpar t
y
acquir
er ighttosue.Thereforeforthoseownersofmo torvehic
lemusthavec ompulsorythird
partyinsuranceinthes e
ns et
hatape rs
onwhoi snotknowna ndfor
eseeabletothecontractmay
acquir
er ightsandthatisthethir
dpa rt
y.The r
eforeathirdpart
yma ysuet hepart
ie
stothe
contra
c tofinsuranc
et hatisei
thertheowneroft hemotorvehicl
eorthec ompanyofi nsuranc
eor
both.

CRI
TICI
SMSOFTHEDOCTRI
NEOFPRI
VITYOFCONTRACT

Despi
tether
uler
ela
test
othebe
nefi
tofthecontr
acta
nds t
ate
sthatacont
rac
tca
nonl
ybe
enf
orcedbyaper
sonwhoisapart
ytothecontr
act
,or,a
lt
ernat
ive
ly,aper
sonwhoi
snotap
art
y
t
oacontr
actc a
nnotcla
ima nybenef
itunderiteveni
fthec ont
ract
ingpa
rti
eshadt
hemselves
a
gree
dthatthethi
rdpartys
houldbea bl
etoe nfor
ceit.Thedoctri
neofpri
vit
ytocont
rac
tis
f
ace
dwi t
hsomec r
it
ici
smamongdi ff
e r
entauthor
sande ducat
ors
,suchcr
it
ici
smlevel
eda g
ains
t
t
hedoct
ri
nei ncl
udethefol
lowings
:-

Firstl
y,thedoctr
ineofpr i
vityofc ont
ractitinf
ringesther i
ghtofbenefi
cia
ries
.Somec ontra
ct
ma ybema depurposelyforthebe nef
it
soft hethirdparty.Butthedoctr
ineli
mi t
slia
bil
iti
esand
rightstothepart
iesonly.He ncethethirdpart’
srightisinfri
nged.Sinc
ehe /
shewa snotapartyt
o
ac ontr
a c
tbutitwa sma deforhisorhe rinte
rest
.Se condly,Pri
vityofcont
ractdef
e a
tsthe
intenti
onofthepa rt
iestothecontract
.

CONCLUSI
ON

Thirdpart
yr i
ghtswouldbee f
fecti
veonlywhe nthec ontra
c texpres
slyst
atesi
toriftheter
msin
contra
ctexpress
lypurport
edtoc onf
erabe nefi
tont hethir
dpa rtyanditcanbeinte
rpret
edthat
t
het hi
rdpartycanbepe r
mitt
edt ohavear emedyinpur suings uchbenef
itaga
instt
hem.So,a l
l
t
he s
ee xc
eptionsandstat
ute
se xplai
nedabovea r
ec onsider
e dimportanta
ndhighlybe ne
fic
iali
n
cir
cumventingtherul
ewhe nthirdpart
yrightsneedt obee sta
bl i
she
d.
REFERENCE

BOOKS

Mc
kendr
ick.
,E(
2009)
.Cont
rac
tLa
w(8t
hEd)
.Ba
sings
toke
:Pa
lgr
aveMa
cmi
ll
an.

Bea
tson,J,
Burrows
,A&Ca r
twr
ight
,J.(
2010)
.Ans
on’
sLa
wofCont
rac
t(29t
hed)
.Oxf
ord
Uni
versi
tyPre
ss:NewYor
k

Ndi
ti
,N.N.(
2004)
.Ge
ner
alPr
inc
ipl
esofCont
rac
tsi
nEa
stAf
ri
ca.Da
resSa
laa
m:Da
resSa
laa
m
Uni
ver
sit
yPress

STATUTES

La
wofCont
rac
tAc
t[Ca
p345R.
E.2002]

TheBi
llofExc
hangeAc
t[CAP215R.
E.2002]

Roa
dTr
aff
icAc
t,[
CAP168R.
E.2002]

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Twe
ddl
evAt
kins
on[
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R762

Dunl
opPne
uma
ticTyr
eCo.
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dvSe
lfr
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,Lt
d[1915]A.
C847

Be
swi
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swi
ck[
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C.A)

Bur
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aneLi
mit
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nyLi
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ed[
1967]H.
C.DNo156

J
umaGa
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Ope
rat
ivea
ndRur
alDe
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Tanza
niaUnionofIndus
tri
ala
ndComme r
cialWorker
s[TUCO]atMbeyaCementCompa
nyLt
d
vMbe yaCementCompanyLtdandNa
tionalIns
uranc
esCor
por
ati
on[Civi
lCas
eNo.135of
2000]