The doctrine of privity of contract limits enforcement of contractual rights and obligations to the parties involved. Recognised in English common law and applied in Malaysia, it prevents third parties from suing or being sued on a contract, subject to key exceptions such as trusts, agency, statutory provisions, assignment, and tortious interference.
FIDIC contracts are internationally recognised standard form agreements used in construction and engineering projects. Published by the Fédération Internationale Des Ingénieurs-Conseils, they provide a structured framework for allocating risk, defining responsibilities, and managing disputes. Widely used in large-scale and cross-border projects, FIDIC contracts offer a practical and balanced starting point for project delivery.
Contracts are the lifeblood of business relationships, defining the scope of agreements and the rights and obligations of all parties. They should not be treated as one-off documents, but as living instruments requiring active management. This article explains the basics of contract management and why it is essential for reducing risk and protecting commercial interests.
