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The Contracts (Rights of Third Parties) Act 1999 significantly reformed the common law of Doctrine of Privity. Historically a third-party could not have obligations imposed by the terms of a contract, and a third-party could not enforce a contract for which a consideration was not provided. The Act allows third parties to enforce terms of contracts that benefit them in some way, or which the contract allows them to enforce. It also grants them access to a range of remedies if the terms are breached. Under the Act, the ways in which a contract can be changed are limited without the permission of an involved third-party and at the same time protection is provided for the promisor and promisee in situations where there is a dispute with the third-party. Parties to a contract are allowed to specifically exclude the protection given by the Act if they want to limit the involvement of third parties.

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