contract law(privity)

Question 1

privity of contract

Answer 1

a contract cannot confer (give) rights or impose (force)
obligations on someone who is not party to the contract.

Question 2

Relationship between privity and consideration

Answer 2

The rule of privity is based on the rule that consideration must move from the
promisee as in Tweddle v Atkinson.

Question 3

Relationship between privity and consideration case study

Answer 3

Jackson v Horizon Holidays [1975]

Question 4

Common Law Exceptions to Privity

Answer 4

Agency this is Where one person, the agent is authorised to make a contract on
behalf of another person, the ‘principal.

Question 5

Common Law Exceptions to Privity case study

Answer 5

Scruttons Ltd v Midland Silicones Ltd (1961)

Question 6

Common Law Exceptions to Privity(contracts)

Answer 6

Collateral Contracts - a second contract found alongside the main agreement.

Question 7

Collateral Contracts case study

Answer 7

Shanklin Pier Ltd v Detel Products [1951]

Question 8

what are Restrictive covenants

Answer 8

one landowner promises the other landowner not to carry out certain acts on their own land. Restrictive covenants usually happen
when somebody selling land wishes to restrict what the buyer can do with it.

Question 9

case study for Restrictive covenants

Answer 9

Tulk v Moxhay [1848]

Question 10

Contract (Rights of Third Parties) s1(1)

Answer 10

someone who is not a party to a contract
may enforce a contract if the third party is expressly identified by name, or is a member of a group of people or matches a
description in the contract;

Question 11

Contract (Rights of Third Parties) s1(1)

Answer 11

the contract expressly provides that the third party may enforce
the contract; or,

b) the contract term is an attempt to confer the benefit of the term
on a third party.

Question 12

what is s1(2) of contract rights of third parties

Answer 12

under s1(2), s1(1)(b) does not apply if on a property construction of the contract,it appears that the parties did not intend the terms to be enforceable by the third party

Question 13

case study of contract rights of third party s1(2)

Answer 13

nisshin shipping v cleaves (2003)

Question 14

what is s1(3) in contract rights of third parties

Answer 14

under s1(3) in order for a third party to enforce a term of such a contract they must be expressly identified by name,member of a class as answering a particular description.

Question 15

when does the s3 apply

Answer 15

under s3 if the act applies the defendant can rely on any defence or valid exclusion clause that was available to the original contracting party

Question 16

problems with privity case study

Answer 16

beswick v beswick (1967)

Question 17

what are other statutory execptions

Answer 17

These include giving rights to third parties under insurance contracts, both marine and
motor

For motor insurance, this would include named drivers on a policy, and someone driving
another car in an emergency under ‘driver of other cars’ terms in the insurance policy.