Exceptions to the rule of Privity- cards checked Flashcards
What are the 5 expetions for the rule of privity?
1- Holidays
2- Agencies
3- Collateral contracts
4- Restrictive Covenants
5- Contracts (rights of 3rd parties) act 1999.
Which case goes with holidays?
Jackson V Horizon holidays
Jackson V Horizon holidays
-expetions for holidays and other social contracts
-damages awarded for all members of the holiday party/ all parties may sue.
What is meant by an agency/ when does it occur?
-when an agent is authorised to act on behalf of the other person (the principal)
-Principal bound by terms of contract even if they did not make it.
What is meant by a collateral contract?
-can avoid strictness of privity if there is a second contract running alongside it.
-(i.e. can have a claim without privity)
What case goes with collateral contracts?
Shanklin Pier V Detel products
Shanklin Pier V Detel products?
-even though the contract was between detel and the company hired to paint the pier.
-there was a secondary contract between Shanklin Pier and detel because the paint lasting 7 years would be deemed consideraton.
What is meant by a restrictive covenant?
-An agreement to a restrictive use of land
-runs with the land does not matter who made it.
Which case goes with restrictive covenants?
Tulk V Moxhay
Tulk V Moxhay
-can enforce old restrictive covenants even if there is new owners.
What section of the contracts/ rights of 3rd parties act 1999 outlines the exception?
S1
What does the rights of the 3rd party act S1 outline? (ask what 3rd point means)
-a party to a contract can enforce if…
- 3rd party is expressly identified by name/member of a class/ as answering a particular decision.
- expressly provides that the 3rd party may enforce the contract.
3.The contract term is an attempt to grant the benefit of the term on the third party
