Privity Flashcards

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1
Q

what is the basic rule of privity?

A

only those who are a party to a contract are able to sue under it

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2
Q

what are the 3 most common situations in privity?

A
  • sale of gods
  • contractors/sub-contractors
  • contracts made for other people
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3
Q

what does tweddle v atkinson say?

A

only a person who is a party to a contract can sue under it

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4
Q

what are the 3 reasons that liability being passed down the chain may not work?

A
  • the subcontractor or manufacturer may go bankrupt
  • the relevant party cannot be found
  • there may be an exclusion clause in their contract with the main contractor
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5
Q

what are the 2 types of exceptions to the basic rule?

A
  • common law exceptions
  • contracts ( rights of third parties ) act 1999
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6
Q

what are the common law exceptions?

A
  • agency
  • damages on behalf of another
  • restrictive covenants that run with the land
  • collateral contracts
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7
Q

what does tulk v moxhay say about restrictive covenants that run with the land

A

that restrictive covenants are promises NOT to do something on land, and that it applies to whoever owns the land there-fourth

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8
Q

what is the case for damages on behalf of another?

A

jackson v horizon holidays

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9
Q

what are collateral contracts?

A

when person A enters a contract with person B, then person B enters a contract with person C specifically due of the contract with A, it allows them to sue if C has made a guarantee or assurance of quality to A

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10
Q

what is the case for collateral contracts?

A

shanklin pier v detel products

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11
Q

what does section s1(1)(a) of contracts say?

A

that 3rd parties can enforce rights where the contract expressly states that a thirs party can enforce ( the contract literally identifies the people who can sue under it )

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12
Q

what 3 things are there to prove in collateral contracts?

A
  • there are 2 contracts in existence
  • the second contract was made specifically because of the first contract
  • the second contract involved a guarantee of quality to the party trying to sue
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13
Q

what section of section s1(1)(b) of contracts say?

A

that 3rd parties can enforce rights where a contract purports/intends to confer a benefit on a third party (contract doesn’t specifically say they can, but suggests it)

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14
Q

what does section s1(2) of contract say?

A

that person A and person B can also exclude third party rights if they specifically put this in their contract

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15
Q

what is the case for contracts (rights of third parties) act 1999?

A

misshin shipping v cleaves

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