Privity

Question 1

What is privity ?

Answer 1

The idea that contracts cannot confer rights or obligations to someone who is not party to a contract

Question 2

What case found a way around the rule of privity ?

Answer 2

Jackson v horizon holidays (1975)

Question 3

What happened in Jackson v horizon holidays (1975) ?

Answer 3

Jackson booked a holiday which didn’t meet the advertised standard, so he sought remedies for his whole family as they were all affected but not privy to the contract

Question 4

What are some different exceptions to the privity requirement ?

Answer 4

If an agency makes a contract on someones behalf

If the courts find a second contract alongside the first (collateral contracts)

Third party expressly identified by name and contract is enforced/conferred to their benefit

Question 5

What happened in Beswick v Beswick (1967) ?

Answer 5

A man transferred his business assets and in a mix up of consultancy payments, his widowed wife’s needs In the agreement weren’t honoured