Privity

Question 1

What are the 4 common law exceptions

Answer 1

1) collateral contracts
2) agency
3) restrictive covenants
4) special cases

Question 2

What is a collateral contract (with case)

Answer 2

A 2nd contract which runs alongside the main agreement
If found the court may be able to avoid the strict rule of privity
Illustrated in Shanklin Pier v Detel Products

Question 3

What is agency (with case)

Answer 3

Principal is bound by the acts of their agent as they have authorised them to contract on their behalf
If there is a disagreement the principal and agent are seen as one (The Eurymedon)

Question 4

What is restrictive covenants (with case)

Answer 4

Relates the land law only (e.g. property) and is a legal promise which restricts the use of land in some way
It runs with the land so people who buy the land many years after the original contract are still bound by it (Tulk v Moxhay)

Question 5

What are special cases (with cases)

Answer 5

Privity can be harsh and seen to cause injustice so the courts created special cases
Originally in Jackson v Horizon Holidays - whole family able to recover loss
Developed further in Linden Gardens v Lenesta Sludge to extend beyond families