The Enactment of the Contracts (Rights of Third Parties) Act

question 2

Multiple Choice

The enactment of the Contracts (Rights of Third Parties) Act 1999 (C(RTP) A) was intended to provide a third party with a direct right to enforce contractual terms made for his benefit although he is not the promisee and he has not given consideration for the promise. Which of the following statements is true?

• A) C(RTP)A has abrogated the privity rule and replaced all avoidance devices previously applied by the courts to circumvent it.
• B) C(RTP)A provides the promisee with a direct right to claim damages on behalf of the third party.
• C) C(RTP)A is only one more exception to the privity rule. All previous avoidance devices are still valid.
• D) C(RTP)A provides contracting parties with the possibility of imposing a burden on a third party.

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Definitions:

Price Increase

A rise in the cost of goods or services over time.

Unit Elastic

A scenario in which a change in price by a certain percentage results in an identical percentage change in the amount demanded or supplied.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price during a specified time period.

Price of Radios

The amount of money required to purchase a radio, influenced by factors such as brand, technology, and market demand.