privity Flashcards
tweddle v atkinson- engaged
- Tweddle and Miss Guy were engaged. - Both fathers agreed to give the couple a sum of money when the marriage took place, but Mr Guy died before making his payment.
It was held that William was not entitled to the money. He was a beneficiary of a promise, but he had not provided any consideration. There was no contract between William and Mr Guy and therefore no privity of contract.
agency - exceptions
Where an agent acts on behalf of their Principal, the Principal is treated as though they had made the contract themselves. E.g. A creates a contract on behalf of B, then B is seen as a party to the contract.
third party insurance - exceptions
If an insurance policy has been made for another’s benefit, they can claim even if they did not pay the premiums. For example, under the Road Traffic Act 1988 motorists are required to have insurance against damage and injury to other road users. In certain circumstances, an injured road user can claim compensation directly from the other party’s insurance company.
trusts - exceptions
A trustee will hold, for example, property on behalf of another. A trust is where property is passed by one party to a second party (the trustee), stating that it is to be held by the trustee for the benefit of third parties (beneficiaries). If the trustee does not comply with conditions set out in the trust, then the beneficiary can apply to the court to enforce the terms of the trust.
contracts for the benefits of a group - exceptions
Where a contract is made in one person’s name, but the contract benefits a group. E.g., Jackson v Horizon Holidays (1975) Mr Jackson booked a holiday for his family. The holiday was so poor that Mr Jackson decided to sue. Mr Jackson could sue as the party to the contract, but damages were awarded to the whole family. i.e., only the person who made the contract is entitled to sue on it. However, that person will be able to sue for his own losses and those of the group.
