Common Law Methods of Circumventing the Doctrine of Privity

Question 1

What are 4 common law exceptions to the doctrine of privity?

Answer 1

1) Agency

2) Assignment

3) Actions in tort

4) Other judicial attempts to avoid the doctrine

Question 2

When does an agency relationship occur?

Answer 2

where one party, the agent, is authorised expressly/ by implication by the principal, to contract on behalf of the principal.

Question 2

What happens if an agent enters into a contract on their principal’s behalf?

Answer 2

Its as if the contract was made between principal + that Party.

Question 3

What are the 3 requirements needed to establish an agency relationship?

Answer 3

(a) principal should be named = must be clear agent is contracting on principal’s behalf;

(b) agent should have authority to act as agent = principal only bound by acts of agent which are within agent’s authority; +

(c) Consideration has moved from principal.

Question 4

Can the existence of a collateral contract provide an exception to the doctrine of privity?

Answer 4

yes

Question 5

Can there be an action in tort? think Donoghue v Stevenson - Could C bring claim against manufacturer too?

Answer 5

Yes, they could.

Question 6

Where A is under a contractual obligation to B and B assigns their contractual rights to C, is it be possible for C to sue A on their promise to B?

Answer 6

Yes it is but…because B is simply passing their rights to C, the extent of C’s rights can never exceed the rights of B.

Question 7

What is a ‘non-assignment’ clause?

Answer 7

Where parties agree that assignment of rights is prohibited.