Formation - Privity

Question 1

Generally, can a person who is not party to the contract sue under the contract?

Answer 1

No

Question 2

What is the POL from Dunlop vs Selfridge?

Answer 2

There was no contract between Selfridge and Dunlop. Dew bought tyres from Dunlop, agreeing not to sell below a fixed price. Sold to Selfridge on these terms but they sell on at a discount, Dunlop’s actions failed as they were not party to the contract

Question 3

What is stated in the Contracts (Rights of third parties) Act 1999?

Answer 3

3rd party can now enforce a term in the contract if the contract contains an epress term to that effect OR the terms provides the 3rd party with a benefit. (and the parties intended it to do so)

The 3rd party must be expressly identified in the contract by name.

Question 4

What is the POL from Nishhin Shipping vs Cleaves?

Answer 4

Clause for payment of broker in agreement who was not party to contract - able to recover under the act

Question 5

What is the POL from Jackson vs Horizon Holidays?

Answer 5

If the 3rd party is a valid party to the contract, he has access to all remedies as the remaining parties do

Question 6

What is the Agency exception to privity?

Answer 6

The contract can be enforced between the Principle and the 3rd party