The Privity of Contract

I09 4

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Abstract

Modernisation has enhanced one’s ability to conduct his/her affairs. Such advancement has enabled two or more parties from either ends of the globe to conclude a contract. Contracts that are multi lateral in nature is nothing new as a merchandise may require many different parts of different origins to be assembled before it can finally be put on the shelf and is ready for the consumer. Such phenomenon has dented the domination of the doctrine of privity in common law that once steadfastly restricts a contract to contracting parties only. This paper will attempt to explain privity of contract and the position of a third party to a contract under the Malaysian contract law as compared to some Commonwealth countries. The paper will also put forth suggestions that Malaysia can take to achieve contractual justice for third parties.