Privity of Contract (Paper 3-Section B Topics 1-4) Flashcards
What is ‘privity’?
Only those who are party to a contract are bound by it and can benefit from it
In what case was the concept of privity set out in?
Dunlop v Selfridge
Give the held of: Dunlop v Selfridge
Dunlop were not a party to contract so they were not permitted to sue
Give the held of: Bestwick v Bestwick
The aunt was unable to claim as she wasn’t a party to the contract
‘Privity is based on the rule that (a) must move from the (b)’
Fill the blank
(a) Consideration
(b) Promissee
Give the held of: Tweedle v Atkinson
The claim failed as the groom was not a party to the agreement and the consideration did not move from him
Give the held of: Jackson v Horizon Holidays Ltd.
The court allowed Mr. Jackson to claim damages for him and his family
Name the general exceptions in privity
Collateral contracts
Agency
Restrictive Covenants
Statutory Exceptions
What is a Collateral contract?
An agreement that runs alongside the main agreement
Give the held of: Shanklin Pier v Detel
There was consideration for a collateral contract as the pier company told the contractor to use Detel
What is Agency as a privity exception?
When an agent is permitted to make a contract on behalf of another, the principle is still bound by the terms of the contract even though they didn’t make it.
What is Restrictive Covenant as an exception of privity?
Under land law, when land law is purchased, the seller and purchaser can form an agreement regarding what can be done on the land.
Give the held of: Tulk v Moxhay
Tulk could enforce the covenant against Moxhay even though there wasn’t a direct contract between them
Name the Acts of Statutory Exceptions of privity
Married Woman’s Property Act 1882
Road Traffic At 1991
Contracts (Rights of Third Parties) Act 1999
What does the Married Woman’s Property Act 1882 state?
This gives married women the right to the family property when the husband dies
What does the Road Traffic Act 1882 state (privity exception)?
An individual can enforce an insurance policy, even if they are not an original party, under the requirement that driver has 3rd part insurance cover.
What does the Contracts (Rights of Third Parties) Act 1999 state?
The Act allows a 3rd party who is not a party to contract to sue if:
- 3rd party is expressly identified by name, member of class or answering a particular description
- if the contract states that the 3rd party can enforce the contract
- contract term is an attempt to confer the benefit of the term o the 3rd party