Privity Flashcards
What is the doctrine of privity?
Only a party to the contract has rights and obligations under it.
A person who is not party to a contract cannot sue on it, even if it was expressly made in their interest
Name and briefly explain a case law example for privity
Tweddle v Atkinson (1831)
Tweddle was to marry Guy’s daughter. Guy and Tweddle’s father made a contract to each pay the couple some money after the wedding.
The agreement stated that Tweddle had ‘full power to sue the said parties in any court of law or equity for the aforesaid sums hereby promised and specified’.
Guy died before he paid the money.
Tweddle sued Guy’s representatives.
Held:
Tweddle could not sue on the contract as he was not a party to it
(despite the statement saying that he could)
Why could John Tweddle have sued William Guy?
Why did Tweddle decide not to?
Which Act would have changed the outcome of this case today?
Because Guy broke the contract by not paying the promised sum before he died
Tweddle would only have been awarded nominal damages as the breach caused him no loss
Contracts (Rights of Third Parties) Act 1999
The Contracts (Rights of Third Parties) Act 1999 allows a third party to make a claim as long as what 3 things are stipulated?
- The third party must be identified in the contract by name or description
- The third party must be given the express right to enforce the contract
- The contract must identify the benefit of a term on the third party
What can the Contracts (Rights of Third Parties) Act 1999 NOT overrule?
How would this apply if Tweddle v Atkinson happened today?
The doctrine of privity
Tweddle could sue
Tweddle’s wife/Guy’s daughter couldn’t sue
