Privity of contract Flashcards
what is the simple rule of privity of contract
a person who is not a party to the contract can neither sue nor be sued on it
in what case did a man who was named in the agreement, his claim failed as he had given no consideration for the agreement himself
Tweddle v Atkinson
in what case is the modern statement about this rule found in
Dunlop Tyre Co v Selfridge & Co
In Dunlop Tyre Co v Selfridge & Co, what did Lord Haldene say
'’only a person who is party can sue on it’’
since privity of contract is a harsh rule, what are the consequences of it (3) + 2 cases
1) goods as a gift - unable to sue if defective
2) may prevent enforcement of services already paid for - Price v Easton
3) may prevent a benefactor’s express wishes being denied - Tweddle v Atkinson
what are the 3 exceptions of privity of contract
1) common law exception
2) statutory exceptions
3) restrictive covenants
explain the common law exception with a case
Jackson v Horizon Holidays - contracts for the benefit of a group
what is an example of statutory exceptions
3rd party motor insurance
give an example of the exception of restrictive covenants
party selling land retains rights over it
what act altered the basic rule of privity of contract
Contracts (Rights of Third Parties) Act 1999
what does s1 of the Contracts (Rights of Third Parties) Act 1991 state
someone not a party to a contract (3rd party) may enforce against either/ both actual parties if … goes on to list 3 elements
what are the 3 elements under s1 Contracts (Rights of Parties) Act 1999
- 3rd party expressly identified - name/ member of a class/ fits description
- contract expressly provides that the 3rd party may enforce the contract
- the contract term is an attempt to confer the benefit of the term on the 3rd party
what does s3 of Contracts (Rights of Third Parties) Act 1999
if contract being enforced by a 3rd part, the person who made the contract can rely on a defence/ valid exclusion cause that was available to the original contracting party
