IIQE Paper 1 Legal Principles question: term giving C a benefit

IIQE Paper 1Legal Principles

A contract between A and B expressly provides that C may enforce a term giving C a benefit. C gave no consideration. Under Cap. 623, C:

A cannot enforce the term, as at common law
B cannot enforce the term without giving consideration
C may enforce the term, subject to any express contrary term
D may enforce the term only once C has also signed the contract

Show the answer and explanation

Answer: C. may enforce the term, subject to any express contrary term

Answer: may enforce the term, subject to any express contrary term. Cap. 623 lets an expressly identified third party enforce a term if the contract expressly provides for it, even without consideration, subject to any express contrary term.Why not the others:• cannot enforce the term, as at common law: Cap. 623 changes the common law position for an expressly identified third party.• cannot enforce the term without giving consideration: Cap. 623 applies even where the third party gave no consideration.• may enforce the term only once C has also signed the contract: C need not become a party or sign; Cap. 623 gives C the right as a third party.Watch out: Applying the common law rule of privity without the Cap. 623 exception.Rule: Under Cap. 623, an identified third party may enforce a term without consideration, subject to express contrary terms.Source: IA P1 Study Notes, 2024 Edition (8th ed., Nov 2024; for exams from 17 Feb 2025), 2.1.4, p. 2/4-2/5