formation of contract: Privity of contract Flashcards
what is privity of contract?
only those who are party to a contract are bound by it and can benefit from it
and concept of privity was set out in dunlop v Selfridge
what was held in dunlop v Selfridge
As dunlop were not party to the contract between dew and Selfridge, weren’t permitted to sue
what was held in Beswick v Beswick
aunt was unable to claim as she wasn’t party to the agreement
what is the relationship between privity and consideration?
privity is based on the rule that consideration must move on from the promisee
what was held in Tweddle v atikson
claim failed, groom wasn’t party to agreement and consideration didn’t move from him, therefore he wasn’t entitled to contract
what was held in Jackson v horizon holidays Ltd?
the court allowed Mr . Jackson to claim damages for him and his family
what are the the general exception when the rule of privity doesn’t apply to?
collateral contracts
agency
restrictive covenants
statutory exceptions
what is collateral contracts?
court can avoid the rule of privity if theres a collateral contract.
a collateral contract agreement which runs alongside main agreement
what was held in shanklin pier v detel?
was no privity between pier and company and detel, but the court held there to be collateral contract meant that pier company could still claim even though contract wasn’t made directly from C + D
was consideration for a collateral contract pier company told the contractor to use detel.
what is agency
when an agent is permitted to make a contract on behalf of another, the principal is still bound by the terms of the contract even though they didn’t make it, principal and agent are treated as the same person.
what is restrictive covenant?
under land law when land is purchased, seller and purchaser can form an agreement regarding what can be done on the land, restrictive covenant
what was held in talk v moxhay
talk could enforce the covenant against moxhay even though there wasn’t a direct contract between them
statutory exceptions
what is contracts act 1999?
act modified the rule of privity which was established in dunlop v Selfridge and co ltd
3rd party is expressly identified by name or as a member of a class or ass answering a particular description
the contract states that 3rd part can enforce the contract or
contract term is an attempt to confer the benefit of the term on the 3 rd party
Statutory exceptions
What does the married woman’s property act 1882 state
Gives married women th right to the family property when their husbands dies
Applied when the property is in husbands name
What does the road traffic act 1991 state
An individual can enforce an insurance policy, even if they aren’t an original party, under requirement that driver has 3rd party insurance cover
