Circumventing the Privity Rule in Malaysia

Abstract

This article briefly introduces the privity rule and its application in Malaysia which has created difficulties in relation to contracts made for the benefit of third parties. This article then investigates how Malaysian courts circumvent the privity rule to ensure that justice prevails. The mechanisms examined include among others agency, trust, tort and estoppel. This article argues that the application of these mechanisms rule are not adequate to resolve the difficulties caused by the privity rule and concludes that a statutory reform to create third party rights in contract law is required