Privity to a contract Flashcards
who can claim rights under a contract
only those who are parties to a contract can claim rights under that contract
Tweedle v Atkinson
you cannot claim rights under a contract if you are not part of the parties to a contract
Jackson v Horizon Holidays
Mr Jackson could claim benefits from the contract on behalf of the rest of the family
Statutory exception - what act is it in
Contracts Rights of a Third Parties Act 1999
third party can claim rights under an agreement if:
- they are expressly named or match the description in the agreement
- it is expressed that they should be able to claim rights under the agreement
- the agreement is made for their benefit
Beswick v Beswick
Nephew had promised to pay his uncle every month and then when he died he would do the same for his wife but when his uncle did die he refused to give money to his wife so his since his uncle’s wife was not part of the original agreement she could not claim money which would have had a different result if the decision was made under the contracts rights of third party act
what can happen in an agent situation
In agency situation, the agent is authorised to make an agreement on behalf of another party so this may be considered an acceptation to the rule allowing them to be able to claim rights
When the agreement is made on somebody else’s behalf then that person can claim rights on that agreement
what is a collateral contract
there is another contract alongside the original contract
Shanklin pier v Detel products
example of collateral contract
what is restrictive covenants
agreement that stays with the land
Tulk v Moxhay
- restrictive covenants
a term of the agreement for the sale of land that stays with the land
Dunlop v Selfridge
Shows how the general rule of privy to a contract makes sense as it would be unfair for a company to be sued when they did not make the agreement
