Contract law- Privity

Question 1

Landmark case for PRIVITY OF CONTRACT DEFINITION

Answer 1

Dunlop Tyre Co. Ltd v Selfridge (1915)- only those people who are parties to a contract are bound by it and can benefit from it

Question 2

The three exceptions to rules of privity in contract law are..

Answer 2

-Agency
-Collateral contracts
-Restrictive covenants

Question 3

Contract law>exceptions to privity> agency> Explain with case

Answer 3

Where a third party has made a decision on anothers behalf, binding on them ,NOT who theyre making the decision for.

Question 4

A collateral contract is

Answer 4

A collateral contract is a separate contract which exists beside the main contact.

Question 5

A restrictive covenant is

Answer 5

Tulk v Moxhay- Where contracts concern land with a restrictive covenant, a contract can bind the purchasers of the land and anyone he sells the land too even though they were not party to the original contract.

Question 6

S.1 Contracts (Rights of Third Parties) Act 1999

Answer 6

Someone who is not a party to a contract (a ‘third party’) may enforce the contract against either or both of the actual parties to the contract if:
-The third party is expressly identified by name, or as a member of a class or as answering a particular description
-The contract expressly provides that the third party may enforce the contract, or
-The contract term is an attempt to confer the benefit of the term on the third party
But, the parties to a contract have a right to exclude the Act from benefitting a third party!

Question 7

Case for contracts (right of third party)

Answer 7

Beswick v Beswick- rectifies this injustice in the law.