Privity

Question 1

Introduction?

Answer 1

Only those parties who are bound by a contract can benefit from it.

Dunlop Tyre v Selfridge - A contract can only be enforced by and enforced against the parties to the contract.

It is similar to consideration in the sense that it must come from the promisee.

Question 2

Exceptions: 3rd party can enforce a contract if?

Answer 2

• The Third party is mentioned by name in the contract.
• The Contract allows the third party to enforce it.
• Jackson v Horizon Holidays - The contract is an attempt to confer benefit onto the third party.

Question 3

Exceptions: Agency?

Answer 3

The Eurymedon - An agency can make a contract on behalf of a third party.

Question 4

Exceptions: Collateral Contracts?

Answer 4

Shanklin Pier v Detel - The Court finds a second contract alongside the main contract.

Question 5

Exceptions: Restrictive Covenants?

Answer 5

Tulk v Moxhay - The purchasing of a land can have a rule that runs with the land even if the land is sold to a different buyer.