Formation - Privity to contract Flashcards
What case established the original rule for privity to contract?
Dunlop v selffridge
What did the original rule state abot who can sue?
Only those who are party to contract can be bound by it, therefore only they can sue.
What is another case which supports the original rule of privity to contract?
Beswick v Berwick
Which case went completely against the original rule of privity to contract?
Jackson v Horizon Holidays ltd
What are the general exceptions of privity to contract?
- Collateral contracts
- Agency
- Restrictive covenant
- Statutory exceptions
What is the acronym used to remember the exceptions in privity to contract?
CARS
What are collateral contracts?
An agreement which happens as well as the main agreement, it mst be about the same issue. This will either induce a party into agreement or be a term which has to be followed as part of the original contract
What case falls under collateral contracts?
Shanklin pier v deutel
What is agency?
When an agent makes a contract on behalf of a company, the company is still bound by the same terms of the contract even though they did not make the contract directly.
Give an example of Agency
A travel agent helping family book a holiday on behalf of the plane company.
What is a restrictive covenant?
under land law, when land if bought, the seller can state what can and can’t be done on the land
What case falls under restrictive covenant?
Tulk v moxhay
What act is used under the statutory exceptions?
Contracts (rights of third parties) act 1999
What didcthe Contracts (rights of third parties) act 1999 do?
Modify the rule of privity which was established in dunlop v self fridge
Under Contracts (rights of third parties) act 1999. What does the act allow a third party to do?
sue if :
- Under s1(1)(a) contract states that the third party shall have rights
OR
- Under s1(1)(b) the contract term is an attempt to confer benefit to a third party
