Privity Flashcards
Privity Def
Relationship betwen two parties recognised by law
Lord Haldane “Only a person who is a party to a contract can sue on it”
Tweddle v Atkinson
Contract betwen father-bride and father-groom to pay for wedding
Father-bride died before he paid and father-groom died before he could sue
Groom sued executor of will for payment
Court rejceted claim as groom was stranger to contract.
Dunlop Tyre Co v Selfridge
Dunlop sold tyres to X on basis he would not sell them to anyone for less than agreeed price and anyone they did must do the same. X sold tyre to selfridge and then sold them on for less.
Dunlop sued
Court held there was no privity between Dunlop and Selfrideg and they could not claim
Beswick v Beswick
Man sold his buisness to nephew with agreement nephew would pay him weekly and after his death pay his wife the same.
After death stopped paying
As a third party she could not sue but as execuotr of his will she could
Order of Specific PRemformance was granted against nephew
Shanklin Pier v Detel Products
Owners of Shanklin Peir had a contract wiht contractors who persuaded owners to use a speicific paint that claimed it was resistant to weather
When it started peeling
Owners sued and court held there was a collateral contract betwen Detel and them
Tulk v Moxhay
Moxhay attempted to bypass restricitive covenants on land in Leicester Square on baiss he was not party to original contract
Court held restrictive covenenats were attached to land and applied to furture owners
Contracts (Rights of 3rd Parties) Act 1999
Can enforce if:
- Third party is expressly named
- Contract is expressly states 3rd parties can enforce
- Contract term is an attempt to confer the benefit onto third party
Nisshin Shipping v Cleaves
Makes clear if parties wish to ensure that a benefit is NOT confereed to 3rd party
USe an express term to rebut that presumption
Married Womens Property Act 1882
Proviedes that where a husband or wife has taken out a life insurance policy to the beneift of the spouse or children
Can be enforced by beneficiary
RTA
Requires road users to have insurance and allows third parties to claim directly against insuracne company even though not party