Privity Flashcards
What is privity?
A common law rule that only those who are a party to a contract are able to benefit from or enforce the terms of the contract. This is based on the rule of consideration.
Why was Beswick v beswick unfair?
There was a clear promise that payment would be paid to both of the parties and the aunt was expressly mentioned in the contract and was unable to claim .
What is the purpose of the c(rpt)a1999?
To allow a third party to enforce the terms of a contract
What is the rule of s1(1)(a)?
Where a contact expressly provides a third party may
What is the rule of s(1)(b)
Where the terms of the contract purports to confer a benefit on a third party
What is the rule under s1(2)
If there is something in the contract that limits or restricts the third party from being able to make a claim, then the encourage will implement it
What is the rule under s1(3)
The third party who is making the claim must be named through, name, description or class
What is the rule under section 2
Where a benefit has been conferred into the third parties, the contract parties may not rescind the contract, vary the contract in such a way that will distinguish
What happens in the C(RPT)A 1999 fails
The common law solutions will be used
What is meant by special cases?
The court will award damages in behalf of a third part which will cover any losses due to breach of contract. This will only happpen in social and domestic cases.
Jackson v Horizon holidays- court awarded damages which would cover the whole family
What is a collateral contract?
A collateral contract is a contract which exists along side the main contract which was separate consideration sometimes provided by a different person to the main party in the contract
Shanklin pier v detel- good consideration as there had been a recommendation made.
What is a restrictive covenant?
A contract between 2 landowners, the other landowner is not to carry out certain acts on their land. The obligation to comply with the covenant remains no matter how the law changes
Tull v moxhay
What is meant by revoked losses on behalf of third parties?
Where a contract was carried out by a previous owner and after that the property had transferred ownership any losses resulting from the contract can be recovered on behalf of the third party by the original owner
