Privity- Paper 3

Question 1

Basic rule of privity + case

Answer 1

-Only parties who are part f the contact can enforce it
-Tweddle v Atkinson

Question 2

5 exceptions to the basic rule of privity

Answer 2

• Agency
• Restrictive covenants that run with the land
• Damages on behalf of another
• Collateral contracts
• Contracts rights of third parties act 1999

Question 3

Agency as an exception to rule of privity

Answer 3

Where one person is authorised to make to make a contract on behalf of another with a third party, e.g. a real estate agent

Question 4

Restrictive covenants that run with the land + case

Answer 4

• Restrictive covenants are promises not to do something on the land, they stay with the land rather than the person who made it
• Tulk v Moxhay

Question 5

Damages on behalf of another + case

Answer 5

• This exception will likely never be used again as the courts said it only applies in ‘special’ cases where a contract was made on behalf of others
• Jackson v Horizon Holidays

Question 6

Collateral contracts + case

Answer 6

-There are two contracts in existence, the second contract was made specifically because of the first contract and the second contract involved a guarantee of quality to the party trying to sue
-Shanklin Pier v Detel Products

Question 7

Contracts of rights of a third party act 1999 + case

Answer 7

• Where the contract expressly states that a third party can enforce it, meaning the contract must literally identify who can sue under it
• Where a contract purports to confer a benefit on a third party, meaning the contract suggests a third party can sue under it but does not say this exactly
• Person A and Person B can also exclude third party rights if they put this in their contract specifically
• Nisshin Shipping v Cleaves