01. Privity of contract. Flashcards
Privity of contract.
The doctrine that only a party to a contract has enforceable rights or obligations under it.
The doctrine that only a party to a contract has enforceable rights or obligations under it.
Privity of contract.
Consideration must move from the …
promisee
No one may be entitled to or bound by the terms of a contract to which …
they are not a party.
If A promises B to confer a benefit upon C. Can C sue to enforce that promise?
No. C has given no consideration.
Consideration must move from the promisee.
Third Party motor insurance is an example of …
exception to privity of contract.
An agent (can / can not) enforce a contract made between their principal and a third party.
can not
A custmer of an employer (may / may not) use the Contracts (Rights of Third Parties) Act (1999) to enforce an employee’s obligations to their employer.
may not
the act expressly excludes contracts of employment
A principal may sue on a contract entered into on his behalf by …
an agent
Contracts (Rights of Third Parties) exceptions to privity: EP*, CAB (UAT ETP NI)
express provision
Contracts (Rights of Third Parties) exceptions to privity: EP, CAB* (UAT ETP NI)
confers a benefit
Contracts (Rights of Third Parties) exceptions to privity: EP, CAB (UAT ETP NI)*
unless at the time the right to enforcement by a third party was not intented
Contracts (Rights of Third Parties) exceptions to privity: EP, CAB (UAT ETP NI)*
Express provision within the contract that a third party may sue.
The contract confers a benefit, unless it appears that at the time enforcement by third parties was not intended.
A holder in due course of a bill of exchange …
can sue all prior holders.
An exectutor, including one of a coal merchant, may …
sue to enforce a contract entered into by the deceased.
A beneficiary, including one of a lease on Romford market…
may sue a trustee
A final consumer of goods, including a bottle of ginger beer …
may sue the manufacturer in tort.
An employer, including one of a crane driver …
may be sued by someone who is a victim of their employee’s negligence.
The subsequent owner of land, including Leicester Square …
is bound by restrictive convenants included within earlier contracts of sale.
In a collateral situation, including the purchase by a contractor of inferior paint, …
the manufacturer may be sued by the end user.
In Beswick v Beswick, old Mrs. Beswick was only able to succesfully sue in her capacity as …
administrator (administratrix) of her late husband’s estate, not as a beneficiary under the contract.
In Beswick v Beswick, old Mrs. Beswick was only able to succesfully sue …
as an administrator, NOT as a beneficiary.
Exceptions to privity: A*, AaE, BAT, TPMI, CROTPA
agency
Exceptions to privity: A, AaE*, BAT, TPMI, CROTPA
administrators and executors
see Beswick v Beswick
Exceptions to privity: A, AaE, BAT*, TPMI, CROTPA
beneficiaries and trustees
see Keech v Sandford
Exceptions to privity: A, AaE, BAT, TPMI*, CROTPA
third party motor insurance
Exceptions to privity: A, AaE, BAT, TPMI, CROTPA*
Contract (Rights of Third Parties) Act
Exceptions to privity.
Agency relationships.
Administrators and Executors
Beneficiaries and Trustees
Third Party motor insurance
Contract (Rights of Third Parties) Act
