Third Party Contractual Rights: A Practical Framework for Malaysia

Discourses on contractual rights almost always centres around rights and obligations of contracting parties. The doctrine of privity awards special treatment to these parties. Nonetheless, current evolution which has brought about diversity in contracting methods, has also impacted contractual rights of third parties. In the beginning, third party contractual rights which is a norm in countries practicing civil laws, are seen to be ‘alien’ in common law countries. Now, many common law countries have recognisedthe injustice to third parties who have received contractual benefit from contracting parties and have sought to ractify the situation through legislative measures. It is from this contention that this article attempts to put forth a practical framework for Malaysia. For this purpose, the theotetical dan substantive platform to provide contractual rights of third parties is discussed by employing the pure legalistic analysis.