Privity

Question 1

Privity Basics

Tweddle v Atkinson

Answer 1

Modern take on privity.
Third party beneficiary does not have privity.

Question 2

Privity Basics

Dunlop Pneumatic Tyre v Selfridge

Answer 2

Sperates privity from consideration.
a-b
b-c
a=/c
No right for third party to recover.

Question 3

Privity Basics

Beswick v Beswick

Answer 3

Administrator of an estate can be in privity with contract to by the deceased.
HOL says this is correct, but cannot sue in personal capacity.

Question 4

Privity Exceptions

London Drigs Ltd v Kuehne Int

Answer 4

SCC exception, allows third party to benefit from a liability clause.
1) Impliedly, explicitly
2) Third party is performing activities contemplated.
Impliedly must be identity of interest - employee and employer are closely connected. employer acts through employees to complete contract.

Suer has high subjective knowledge. Knew employees would be carrying out the work.

Commercial reality -> Third parties have low autonomy.

Question 5

Privity Exceptions

Edgeworth Construction v ND Lea

Answer 5

London Drug test is fact dependant.
This case, the engineers had high autonomy, their own insurance.
Lacks indentity of interest.

Question 6

Privity Exceptions

Fraser River Pile & Dredge v Can-Dive Services

Answer 6

Limiting the liability defense of a third party, 2 part test:
1) Limitation clause must extend explicility or impliedly to third party
2) If third party is doing activity mentioned in the cluase then the clause can not be deleted by contracting parties once the benefit has crystalized.

No longer inchoate,