PRIVITY

Question 1

what is a third party? (1)

Answer 1

a person who is not a party to the contract and has not provided consideration for the contract, but has an interest in its performance.

Question 2

what does the doctrine of privity mean? (1)

Answer 2

means that 3rd parties can neither sue nor be sued under a contract, this includes where a contract is made for the benefit of a 3rd party - the 3rd party have no rights.

Question 3

what does Currie v Misa state? (1)

Answer 3

each party has to do ‘something’ - the quid pro quo’

Question 4

what rule of consideration is vital in terms of privity? (1)

Answer 4

within consideration the consideration must move from the promisee which means that a party cannot sue or be sued under a contract unless he had provided consideration.

Question 5

what are the exceptions within the general rule for common law? (4)

Answer 5

1. agency
2. collateral contracts
3. restrictive convents
4. holiday cases

Question 6

what is meant by exception due to agency? (1)

Answer 6

allows a person to authorise another to make contracts on their behalf - the person who the contract is made for will be sued, not their advocate.

Question 7

what cases can be sued for exception due to agency? (1)

Answer 7

New Zealand shipping v Satterthwaite (1975)

Question 8

what is meant by exception due to collateral contracts? (1)

Answer 8

a contract that exists due to the presence of another contract (it has to exist alongside the original contract for success)

Question 9

what cases can be used for exception due to collateral contracts? (1)

Answer 9

Dunlop pneumatic tyre co ltd v Selfridge (1915)

Question 10

what is meant by exception due to restrictive covenants? (1)

Answer 10

a restrictive convenance follows the property not the contract, a person involved in the passing of the property can have a hand in the breach of rights of that property.

Question 11

what cases can be used for exception due to restrictive covenants? (1)

Answer 11

Tulk v Moxhay

Question 12

what cases can be used for exception due to holiday cases? (1)

Answer 12

Jackson v Horizon holidays (1975)

Question 13

what act covers exceptions due to statutory law? (1)

Answer 13

contracts (the rights of third parties) act 1999

Question 14

what does S1 (a) of the contract act 1999 state? (1)

Answer 14

can enforce the contract if it expressly says they can

Question 15

what case can be used for S1 (a) of the contract act 1999? (1)

Answer 15

Tweddle v Atkinson

Question 16

what does S1 (b) of the contract act 1999 state? (1)

Answer 16

can enforce the contract if it purports to give them a benefit

Question 17

what case can be sued for S1 (b) of the contract act 1999? (1)

Answer 17

nisshin shipping v Cleaves

Question 18

what does S1 3 of the contract 1ct 1999 state? (1)

Answer 18

expressively states the third party must be identified in the contract (often by name but can be general description)

Question 19

what case can be used S1 3 of the contract act 1999? (1)

Answer 19

Lloyds v Harper (1880)

Question 20

when will an act not apply? (3)

Answer 20

-A and B have excluded Cs rights to sue
- C cant be identified in the contract
- its is clear that A and B didn’t intend to have a directly enforceable right