Enforcement of Third Party Rights in Queensland Pursuant to Property Law Act 1974 (Qld), s55
Twentyfive years ago the common law rule of privity of contract was largely abolished in Queensland by the enactment of Property Law Act 1974 (Qld), s55. Subsection 1 provides that:
A promisor who, for a valuable consideration moving from the promisee, promises to do or refrain from doing an act or acts for the benefit of a beneficiary shall, upon acceptance by the beneficiary, be subject to a duty enforceable by the beneficiary to perform that promise.
Any interpretation of the section, including the construction of terms such as "promisor", "beneficiary", "promise", "acceptance" and available defences, is to be gleaned from a handful of reported cases (including obiter in a High Court decision) and a number of unreported Queensland decisions. In many of these decisions the section was called upon by way of alternative argument rather than being the main focus of the action.
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