privity Flashcards
what is the rule of privity of contract
is that the only parties to and against the contract can can enforce the contract Dunlop v Selfridges beswick v beswick this comes from the need to give consideration tweedle v atkinson
there are exceptions to this rule
under the contracts act 1999. S.1 allows a third party to enforce a contract if s1(1)(a) the right was expressly stated in the contract, s1(1)(b) if they can claim a benefit from the contract Nishin v cleaves
s1.(2) states
that the third party cannot enforce the contract if the parties didnt intend them to Prudential v ayers
s.1(3) states that the
third party must be mentioned by name, a member of a class or matching a description
s.2 if a third party has a right under
s.1 to enforce the contract, the parties may not manipulate it in anyway to take away the right
s3 allows
the parties to have a defence against the third party
case law provides more special case exceptions
a collateral contract shanklin piers v detel. a restrictive covenant tulk v mohxhay. a agency agreement made on behalf of a client. a contract made by one member of a family on behalf of their family jackson v horizon holidays