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In the past, the major drawback to contract as a cause of action for product liability claims was the privity rule, because it severely limited the class of people who could sue in contract. The Contracts (Rights of Third Parties) Act was designed to address this problem, and while it is too early to assess its effects, it should in principle increase the chances of compensation for defective products considerably. However, one possible threat to this is that it is easy for sellers to exclude their contracts from the Act; they need only include an express term to this effect. Top law firms are advising clients to do so as routine when they issue a contract. Of course in principle a buyer can refuse to agree to the exclusion term, but given that in many consumer transactions, the consumer simply accepts the terms offered by the seller, this could seriously restrict the practical value of the Act, so that many third parties will still be unable to sue in contract.In the past An important obstacle in the contract as the cause of the claim, the liability of the privity rule because it severely restricted the level of person to sue on a contract. Contracts (rights of third parties) is designed to solve this problem, and while it is too early to assess the impact of it. It should increase the chances of compensation for a defective product, but one of the possible threats in this regard is that it is easy for a vendor that their contracts will not be included in the Act; they need to use quick phase as follows: Leading law firm is consulting with the customer so that uniform when they contract out to a customer. Of course, in principle, the buyer can refuse to agree with words, except that in a consumer transaction, many consumers simply accept the terms offered by the seller is seriously limited. The actual value of the Act so that a third party, many still unable to sue on the contract.
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