Privity

Question 1

What is the rule of privity

Answer 1

Only parties to a contract can sue eachother. Third parties cannot sue on a contract they are not party to even if the object of the contract is for their own benefit
A party also cannot sue or be sued under a contract unless he has provided consideration

Question 2

What are the two key cases for rule of privity

Answer 2

Tweddle v Atkinson - Groom was 3rd party
Dunlop v Selfridge - Dunlop cant sue as they were 3rd party

Question 3

What are the common law exceptions

Answer 3

Agency- allows person to authorise another to make contracts on their behalf New Zealand Shipping
Collateral Contracts- secondary contract alongside main agreement Shanklin Pier v Detel
Restrictive covenants- Tulk v Moxhay
Holiday cases- Jackson v Horizon Holidays (Family)
Dunlop v Lambert held goods lost at sea there was an exception

Question 4

What statuory exceptions are there

Answer 4

Contracts(Rights of Third Party Act 1999) a 3rd party can enforce term sof contract if one of two apply
s1(1)(a) if 3rd party is expressly mentioned
s1(1)(b) if contract purports to confer a benefit on them
s1(2) 3rd party cannot enforce rights if it appears that thwe parties did not intend term to be enforceable by 3rd party

Question 5

What is the exception for the Road traffic Act 1988

Answer 5

All drivers to take out 3rd party liability insurance