Privity of contract: the benefits of reform

INTRODUCTION The rule of privity of contract means that only the parties to a contract have enforceable rights and obligations under the contract. A third party to the contract cannot enforce any of its terms nor have any burdens from that contract enforced on them. The latter aspect of the doctrine is relatively uncontroversial, but the former has throughout its development provoked much criticism and debate. In Ireland, specific difficulties caused by the privity rule have been dealt with up until now by piecemeal legislative and judicial reforms. However, in 2008 the Law Reform Commission recommended a general reform of the doctrine of privity of contract, to allow third parties to enforce contracts which were made for their benefit. In its Report on Privity of Contract and Third Party Rights, the Commission outlined a detailed legislative scheme of third party rights, and a draft Contract Law (Privity of