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The major difficulty with this contract-based approach is the doctrine of privity of contract.
This means that the doctrine of privity of contract does not apply, and P2 in the example would have a theoretical claim against B.
The common law doctrine of privity of contract provides that only those who are party to a contract may sue or be sued on it.
Collateral contracts are an exception to the Doctrine of Privity of Contract.
However, because of the doctrine of privity of contract, only the parties to a contract can sue upon it.
The common law does not allow Lord Wellworthy to enforce the covenant against Mr Sly due to the doctrine of privity of contract.
As the plaintiff was not in a contract with the defendant the court ruled in favour of the defendant on the basis of the doctrine of privity of contract.
The nephew argued that as Mrs Beswick was not a party to the contract, she was not able to enforce it due to the doctrine of privity of contract.
Winterbottom v. Wright (1842) - Reasserted the traditional doctrine of privity of contract to dismiss a negligence claim for damages by a pedestrian who was injured by a defective vehicle.
Under traditional common law, the ius quaesitum tertio principle was not recognized, instead relying on the doctrine of privity of contract, which restricts rights, obligations, and liabilities arising from a contract to the contracting parties (said to be privy to the contract).
However, this had nothing to do with the legality of resale price maintenance clauses, which was not in any question at the time: the decision was based on the doctrine of privity of contract as Selfridges had bought Dunlop's goods from an intermediary.
An example is the High Court's decision in Trident General Insurance Co Ltd v McNiece Bros Pty Ltd 30 where the majority of the Court modified the doctrine of privity of contract to enable a third party to enforce an insurance contract.