Privity

Question 1

What is the general rule of privity?

Answer 1

Only parties to the contract can sue/enforce the contract (Tweddle v Atkinson).

Question 2

What are the 4 common law exceptions to the rule of privity?

Answer 2

1. Agency
2. Restrictive covenants that run with land
3. Collateral contracts
4. Damages on behalf of another.

Question 3

Discuss agency

Answer 3

Where an agent is authorise to make a contract on behalf of another person.

Question 4

Discuss R.C.T.R.W.L

Answer 4

A promise not to do something on the land.

Tulk v Moxhay - Covenants run with the land not the parties to the agreement.

Question 5

Discuss collateral contracts.

Answer 5

Where a second contract is made due to the first. There must be a guarantee of quality in the second contract.
Shanklin Pier v Detel Products.

Question 6

What did the Contracts (Rights of third parties) Act 1999 say?

Answer 6

S1(1)(a) - A party can enforce the contract where it expressly states they are able to do so.
S1(1)(b) - Where a contract benefits a party, they can enforce it (Nissin Shipping v Cleaves)
S1(2) - A party can be expressly excluded from a contract