Privity of Contract – Structure of Answer
Textbook: 429, Q & A: 38, Study Guide: 63
Structure of Answer
1. State common law general rule: “A third party to a contract is unable to acquire
rights or benefits under the contract” (Wilson v Darling Island Stevedoring)
a. Apply to facts.
2. Statutory Exceptions:
a. Property Law Act 1974 (Qld) s 55(1)
i. “A promisor who, for valuable consideration moving from the
promisee, promises to do or refrain from doing an act or acts for the
benefit of a beneficiary shall, upon acceptance by the beneficiary, be
subject to a duty enforceable by the beneficiary to perform that
ii. s 55(6) defines “acceptance” as assent by words or conduct given by
beneficiary to promisor within the time and in the manner prescribed,
or if there is no time specified, in a reasonable time.
iii. An incidental beneficiary cannot claim the benefit (Re Burns Phillip
iv. Acting consistently with acceptance is not sufficient (Re Davies)
v. Apply to facts.
b. Insurance Contracts Act 1984 (Cth) s 48
i. A person who is not a party to a contract of general insurance may if
they are referred to in the contract, whether by name or otherwise, as
person to whom the insurance cover extends, recover the a