Privity Of Contract

Question 1

Privity of contract

Answer 1

Only those who are party to a contract are bound by it and can benefit from it
This is based on the need for consideration to pass from promisor to promisee
Can be unfair and so was avoided in (Jackson v Horizon holidays)

Question 2

Exceptions to private of contract

Answer 2

Agency
Collateral contracts
Contract (Rights of Third parties Act 1999)

Question 3

Agency

Answer 3

One party is authorised to make a contract on behalf of another person

Question 4

Collateral contracts

Answer 4

A subsidiary contract which includes a person to enter into a main contractor which depends upon the main contract for its existeance. The court may be a able to avoid the strict rule of probity by finding a second contract alongside the main agreement

Question 5

Intention to create legal relations business setting

Answer 5

Presumed ICLR in business; Business agreements presumption can be rebutted (Jenes v vernons pools)
Intention Is determined objectively based on the facts of the case

Question 6

Intention to create legal relations domestic setting

Answer 6

Presumed not to have ICLR
Can be rebutted (Balfour v Balfour)
If money changes hands it is more likely to be considered that parties had ICLR