Privity of Contract

Question 1

privity of contract

Answer 1

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)

Question 2

consequences

Answer 2

(1) person receiving goods as gift can’t sue if defective

(2) prevent enforcement of services already paid for (Price v Easton)

(3) rule may prevent a benefactors express wishes being denied (Tweddle v Atkinson)

Question 3

exceptions

Answer 3

(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

Question 4

statue altering the rule

Answer 4

Contracts (Rights of Third Parties) Act 1999

Question 5

Contracts (Rights of Third Parties) Act 1999

Answer 5

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 the benefit of their term on the third party

s3: if contract is being enforced by TP, the person who made the contract can rely on a defence or valid exclusion clause that was available to the original contracting party