Under the Contracts (Rights of Third Parties) Act 1999, in which situation can a third party enforce a term of a contract?

Correct answer: D) Where the contract expressly provides that the third party may enforce it, or a term purports to confer a benefit on the third party who is identified in the contract

Explanation

The common law rule of privity (Tweddle v Atkinson, Dunlop v Selfridge) prevents non-parties enforcing a contract. The 1999 Act allows a third party to enforce a term if the contract expressly says so or if the term purports to confer a benefit on them and they are identified by name, class or description, unless the parties did not intend it to be enforceable by them. Incidental benefit alone is not enough, and no consideration from the third party is required.