Privity Of Contract

Question 1

Privity of contract

Answer 1

Only parties to a contract should be able to sue or enforce rights. Third parties cannot be sued, even if they have an interest in its performance.

Question 2

Case for privity of contract

Answer 2

Tweddle v Atkinson

Even though a person was named in a contract, he was unable to claim a third party right

Question 3

What statute outlines privity of contract

Answer 3

Contracts Act 1999

Question 4

S1 CA 1999

Answer 4

Allows 3rd parties to enforce terms if:
1a-contract expressly provides that they may do so
1b-contract intends to confer a benefit upon them

Question 5

4 Common law exceptions

Answer 5

Collateral contracts
Agents (on behalf of someone else)
Trusts
Groups

Question 6

Collateral contracts case

Answer 6

Shanklin Pier v Detel Products
C employed contractors to paint pier, specifying paint to be used, which was meant to last 7 years. Lasted 3 months,

Cs could sue paint manufacturer

Question 7

Agency case

Answer 7

Scruttons v Midland Silicones
D unloaded ships, C sued for damages to goods. Original contract was with shipping company but agreement with Scruttons brought them into contract

Question 8

Trusts

Answer 8

An equitable obligation to hold property on behalf of holder

Question 9

Trusts case

Answer 9

Les Affreteures Renuni v Leopoldo Walford

Trust holder can enforce contract with trustee

Question 10

Groups case

Answer 10

Jackson v Horizon Holidays

Jackson could have damages for whole family as contracted for them as a grouo

Question 11

S1 Case

Answer 11

Avraamides v Colwill
Company decorating was bought out. Owners of property sued for poor work against new owners but were not able to as new owners were not mentioned in contract