Third party rights (doctrine of privity)

Question 1

what is the doctrine of privity

Answer 1

modern origin- tweedle v Atkinson
- only parties to a contract can enforce or be subject to the benefits of obligations under the contract.

Question 2

what does dunlop pneumatic tyres v Selfridge show

Answer 2

supports tweedle v Atkinson, consideration must be there and nobody not I th contract can act.

Question 3

what is the exception to the privity rule

Answer 3

The contract (rights of a third party) act 1999
- gives effect to the parties intention. if tehybshow that a third party is to have enforcaebk rights, the act allows it.
1. Contract expressly provides that a third party may enforce (s1(1)(a))
2. Term purports to give a benefit to the third party, and must be nothing in the contract to indicate that that was not the intention (s1(1)(b) and s1(2)) S1(2) only applies to s 1(1)(b)
Dolphin, Maritime & Aviation v Sveriges (2009)

Question 4

what are the requirements of varying a contract where there is a 3rd party invovled

Answer 4

Section 2 of the act
- third party has communicated his assent to the term to the promisor
- the promisor is aware that the third party has relied on the term.
- the promisor can reasonably expected to have foreseen that the 3rd party would have relied on the term and the third party has in fact relied on it.