Privity

Question 1

First stage:

Answer 1

A person who is not a party to the contract can neither sue nor be sued under it.  In Tweedle v Atkinson the husband`s claim failed as he had not given consideration. “Only a person who is party can sue on it” (Dunlop Tyre Co v Selfridge & Co).
Here…

Question 2

What is the answer for a 3rd party actually being privy to contract?

Answer 2

Statutory exceptions include the Contracts (Rights of Third Parties) Act 1999. Under s1 someone who is not a party to a contract (a third party) may enforce the contract against either or both of the actual parties to the contract if: the third party is expressly identified by name, or as a member of a class or as answering a particular description, and the contract expressly provides that the third party may enforce the contract, or the contract term is an attempt to confer the benefit of the term on the third party.

Here…

Question 3

Exam Tips for Privity -

Answer 3

• Often goes alongside Consumer Rights questions

-Read the question carefully – if it is asking you for the rights and remedies of someone who has not purchased the product, this will raise the issue of privity

-

Question 4

What are other ways of privity being applicable for people not named in contract?

Answer 4

The rule will not apply to contracts for the benefit of a group. In Jackson v Horizon Holidays Mr J was able to claim for the rest of the family on their behalf for a disappointing holiday even though they were not party to the contract.