1.

0 Introduction

Privity of contract serves to maintain the sanctity of contractual relationships. It ensures that only
the parties who have voluntarily entered into an agreement can enforce its terms or be held liable
for its breach. This promotes the autonomy of individuals in forming contracts and protects
against third-party interference. The statement highlights the principle of privity of contract,
asserting that a third party, not privy to a contract, faces challenges in suing based on that
contract. While this rule promotes contractual autonomy, it may lead to perceived
inconveniences and unfairness.1

Privity of contract serves to maintain the sanctity of contractual relationships. It ensures that only
the parties who have voluntarily entered into an agreement can enforce its terms or be held liable
for its breach. This promotes the autonomy of individuals in forming contracts and protects
against third-party interference.

2.0 The doctrine of privity to contract

One significant case illustrating this is Tweddle v Atkinson,2 where the court held that a son-in-
law could not enforce a promise made for his benefit, as he was not a party to the contract.
However, legal systems have recognized the need for exceptions to this rule.3

For instance, under the doctrine of bespoke modification, a third party may enforce a contract if
the agreement explicitly confers a benefit upon them. In Dunlop Pneumatic Tyre Co Ltd v
Selfridge & Co Ltd,4 the court emphasized the importance of clear intention for a third party to
enforce a contract.5

Furthermore, legislative interventions, such as the Contracts (Rights of Third Parties) Act 1999
in the UK, allow third-party rights unless the contract expressly excludes them. This legislative
shift reflects a recognition of the evolving need for flexibility in contractual relationships. 6

1
Lilienthal, Jesse W. "Privity of contract." Harvard law review (1887): 226-232.
2
(1861)
3
Adams, John N., Deryck Beyleveld, and Roger Brownsword. "Privity of Contract-The Benefits and the Burdens
and the Burdens of Law Reform." Mod. L. Rev. 60 (1997): 238.
4
(1915)
5
Whittaker, Simon. "Privity of Contract and the Law of tort: the French Experience." Oxford J. Legal Stud. 15
(1995): 327.
6
Tettenborn, Andrew. "Covenants, Privity of Contract, and the Purchaser of Personal Property." The Cambridge
Law Journal 41.1 (1982): 58-86.
In Tanzanian contract law, privity of contract is a fundamental principle. The Tanzanian Contract
Act recognizes and upholds this principle, emphasizing that only parties to a contract can enforce
its terms or be bound by its obligations. The courts in Tanzania have consistently upheld privity,
ensuring the stability and predictability of contractual relationships.

3.0 Conclusion

In conclusion, while privity of contract is a fundamental principle, legal developments and case
law exceptions have aimed to address the perceived shortcomings, allowing for more equitable
enforcement of contracts by third parties in certain circumstances.