Privity of Contract Flashcards
(5 cards)
privity of contract
person who is not a party to the contract cannot sue or be sued under it (Tweedle v Atkinson)
Lord Haldene: only a person who is a party can sue on it (Dunlop Tyre v Selfridge)
consequences
(1) person receiving goods as gift can’t sue if defective
(2) prevent enforcement of services already paid for (Price v Easton)
(3) benefactors express wishes being denied (Tweddle v Atkinson)
exceptions
(1) common law exceptions - contracts for benefit of a group (Jackson v Horizon Holidays)
(2) statutory exceptions - 3rd party motor insurance
(3) restrictive covenants - party selling land retains rights over it
statue altering the rule
Contracts (Rights of Third Parties) Act 1999
Contracts (Rights of Third Parties) Act 1999
s1: third party can enforce contract if
(a) expressly identified by name, as a member of a class, or as answering a particular description AND
(b) expressly provided that TP may enforce the contract OR
(c) contract term is an attempt to confer a benefit on the third party
s3:
- can sue directly
- if contract is being enforced by TP, D can rely on a defence or valid exclusion clause that was available to the original contracting party