Privity of Contract Flashcards
AoP governing Privity of Contract
Contracts (Rights of Third Parties) Act 1999
Section 1(1) C(RoTP)A’99
gives a 3rd p the right to enforce the contract where it is intended that a benefit should be conferred to them in 2 situations: express/implied (DvM, NvC)
Section 1(2) of C(RoTP)A’‘99
the 2nd (implied) right will not apply if the parties did not intend the 3rd p to have it (PvA)
Section 3 C(RoTP)’99
allows a contracting p to have a defence against the 3rd p
Dunlop v Selfridge, Beswick v Beswick
the rule of PoC-> a contract can only be enforced by and against the parties to the contract, this comes from the need to give consideration
Dolphin v Maritime, Nishin v Cleaves
s1(1) 2 situations:
- s1(1)(a), expressly stated in the c
- s1(1)(b) implied from the c, if the c ‘purports to confer a benefit on the 3rd p’
Prudential v Ayers
s1(2) the 2nd (implied) right will not apply if the parties did not intend the 3rd p to have it
Shanklin Pier v Detel
1 CL: collateral c, formed in addition to main c. if a main contracting party insists on the collateral c, they will have rights over a party in the sub-contract
Tulk v Moxhay
2 CL: restrictive covenant, e.g to build on land, placed by a seller of land, which ‘runs with the land’ and binds subsequent purchasers
3rd Case Law
an agency agreement, where agent makes a contract with another p on behalf if his client, client can enforce their rights that contract
Jackson v Horizon Holidays
4 CL: where a c is made by one person on behalf of the whole family, as in * each member can enforce their rights under that contract
Darlington v Wiltshier
5 CL: property developers able to recover losses from builders on behalf of future owners of p. however, c’s between builders & subcontract p’s (e.g) cannot be enforced by PD
Privity Checklist
- define
- C(RTP)A ‘99
- s1(1) intend-express/implied (DvM, NvC) s1(2) x intend (PvA), s3 defence against
- collateral (SPvD, covenant (TvM), agency, family (JvHH) & property developers (DvW)
Contracts (Rights of Third Parties) Act 1999
-C(RTP)A ‘99
AoP governing Privity of Contract
gives a 3rd p the right to enforce the contract where it is intended that a benefit should be conferred to them in 2 situations: express/implied (DvM, NvC)
Section 1(1) of C(RTP) ‘99
