Privity of Contract (Paper 3-Section B Topics 1-4)

Question 1

What is ‘privity’?

Answer 1

Only those who are party to a contract are bound by it and can benefit from it

Question 2

In what case was the concept of privity set out in?

Answer 2

Dunlop v Selfridge

Question 3

Give the held of: Dunlop v Selfridge

Answer 3

Dunlop were not a party to contract so they were not permitted to sue

Question 4

Give the held of: Bestwick v Bestwick

Answer 4

The aunt was unable to claim as she wasn’t a party to the contract

Question 5

‘Privity is based on the rule that (a) must move from the (b)’
Fill the blank

Answer 5

(a) Consideration
(b) Promissee

Question 6

Give the held of: Tweedle v Atkinson

Answer 6

The claim failed as the groom was not a party to the agreement and the consideration did not move from him

Question 7

Give the held of: Jackson v Horizon Holidays Ltd.

Answer 7

The court allowed Mr. Jackson to claim damages for him and his family

Question 8

Name the general exceptions in privity

Answer 8

Collateral contracts
Agency
Restrictive Covenants
Statutory Exceptions

Question 9

What is a Collateral contract?

Answer 9

An agreement that runs alongside the main agreement

Question 10

Give the held of: Shanklin Pier v Detel

Answer 10

There was consideration for a collateral contract as the pier company told the contractor to use Detel

Question 11

What is Agency as a privity exception?

Answer 11

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.

Question 12

What is Restrictive Covenant as an exception of privity?

Answer 12

Under land law, when land law is purchased, the seller and purchaser can form an agreement regarding what can be done on the land.

Question 13

Give the held of: Tulk v Moxhay

Answer 13

Tulk could enforce the covenant against Moxhay even though there wasn’t a direct contract between them

Question 14

Name the Acts of Statutory Exceptions of privity

Answer 14

Married Woman’s Property Act 1882
Road Traffic At 1991
Contracts (Rights of Third Parties) Act 1999

Question 15

What does the Married Woman’s Property Act 1882 state?

Answer 15

This gives married women the right to the family property when the husband dies

Question 16

What does the Road Traffic Act 1882 state (privity exception)?

Answer 16

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.

Question 17

What does the Contracts (Rights of Third Parties) Act 1999 state?

Answer 17

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