Privity

Question 1

AO1 INTRO

Answer 1

The role of Privity of Contract is that a contract can only be enforced by and against the parties to the contract (DUNLOP v SELFRIDGES, BESWICK v BESWICK). Both parties much give consideration (TWEDDLE v ATKINSON)

Question 2

If Rel:
AO1 EXPRESS/INTERPRET

Answer 2

There’s an exception under S1(1) of the Contracts(Rights of Third Parties) Act 1999 which gives a third party the right to enforce a contract in 2 circumstances. Either (A) - the contract expressly states this right under S1(1)(A) or (B) - the contract purports to confer a benefit to the 3rd party, which can be interpreted under S1(1)(B). (NISSHIN v CLEAVES)

Question 3

If Rel:
AO1 NCD

Answer 3

S1(1)(3) - the 3rd party must be identified in the contract either by name, as a member of a class, or as answering a particular description. If they don’t then the C(RTP) Act will NOT be available.

Question 4

AO1 INTEND

Answer 4

S1(2) - 3rd party can’t enforce S1(1)(B) if parties didn’t intend them to (PRUDENTIAL v AYERS)

Question 5

AO1 MANIPULATE

Answer 5

S2 - where a 3rd party has a right under S1, the parties to the contract may not manipulate the contract in any way which means the 3rd party can’t enforce the contract.

Question 6

AO1 DEFENCE

Answer 6

S3 - allows a contracting party to have a defence against the 3rd party