Privity Flashcards
Definition of privity
Privity of contract is a long standing rule in common law that only those who are parties to a contract can benefit from it
Why was Beswick V Beswick unfair
Because the court held the aunt was not a party to the contract and there was no privity meaning she couldn’t get the money she was intilited to
What is the first common law solution jusges created due to unfair and unjust outcomes
The first solution a judge can use is to award more damages to the claimant to share with others
Mainly used in social/domestic cases
What case demonstrates the first common law solution
Jackson V Horizon Holidays: highlights this as the court thought it would be unfair fo limit damages to Mr Jackson, so they awarded damages to refelect all members of the family
What is the 2nd common law solution a judge can use
A further common law solution a judge can use is to find a collateral contract if the claimant has given consideration through a recommendation
What case highlights the 2nd common law solution
Shanklin Pier: where the court found there was a collateral contact between them as the pier had provided consideration by instructing the contractors to buy from them
What is the final common law solution a judge can use
The final common law solution a judge can use is enforcing a restrictive covenant, where there is a agreement for land to be delt with in a certain way which binds subsequent buyers of land even though they weren’t part of the original agreement
What can judges now apply and what does it allow
Judges can now apply the CRTPA 1999 s1 which allows someone who is not part of the contact to enforce it against either or both parties to the contract as long as they are expressly mentioned by name, class or description
Can people exculde the act
Yes people can exculde third parties from enforcing the CRPTA if they inculde a clear exculsion clause in a contract
What else can a business inculde
A business can also limit liability by including a limitation clause which limits the amount of damages a party can claim if they are successful in suing D
What case highlights the final common law solution
Tulk V Moxhay: Tulk could enforce the covenant against Moxhay even though there was no direct contact between them
