Privity

Question 1

Privity principle

Answer 1

A contract cannot confer rights or impose obligations on a person who I not party to the contact, seen in Dunlop v Selfridge.
Can be seen as unfair (Jackson v Horizon Holidays - family should also have been entitled to damages)

Question 2

General exceptions in privity

Answer 2

Agents can be authorised to make contracts on behalf of another person (employees)
Collateral contracts - Shanklin Pier v Detel. Collateral contract between the supplier to the contractor and the client.

Question 3

Contracts (Rights of Third Parties) Act 1999

Answer 3

A third party may enforce the contract if:
1. The third party is expressly identified by name or as answering a particular description, and
2. The contract expressly provides that the third party may enforce the contract, or
3. The contract term is an attempt to confer the benefit of the term on the third party

Parties have the right to exclude the act from benefitting a 3rd party

Fixes problem in Beswick v Beswick