Privity Flashcards
What is the rule of privity
Third parties cannot sue or be sued under a contract even if they have interest in its performance, only those who are parties to a contract are bound by it
What occurs when there is a chain of contracts
Those you are not in a contract with have no obligation to you
What case would you use for chain of agreements
Dunlop pneumatic tyre v Selfridge
When can acceptions to privity occur
When there is an issue with the rules
What case would you use for exceptions in privity
Jackson v Horizon holidays
What is the rule of privity based on
The rule that consideration must move for the promise
If the contract is between the buyer and the company, if the goods get damaged is it a third parties fault
No unless there is a stated rule
What case would you use for 3rd parties are not liable for damage unless stated otherwise
Scruttons Ltd v Midland Silicones Ltd
What is a collateral contract
A second contract that runs alongside the main
What case would you for collateral contracts can be used
Shanklin Pier v Detel products
What happens if the contract regards land
The promise passes through all the contracts- ‘covenant ran with the land’
What case would you use for land contracts and agreements running through them all
Tulk v Moxhay
What act enables parties to enforce contractual terms even where they are not a party
Contracts (rights of third parties) act 1999
What are the 2 things that must be satisfied for a 3rd party to enforce contractual terms
The contract expressly provides that they may do so; or
The contract reasons to discuss a benefit upon them 2
What section does the contract expressly provides that they may do so fall under
1(a)
