Privity

• What is privity in contract law?

  The relationship between parties of a contract.
• Who is bound by a contract?

  Only those who are party to the contract.
• What is a third party in contract law?

  A person who isn't a party to the contract and hasn't provided consideration.
• What case illustrates the concept of a third party?

  Donoghue v Stevenson.
• In Donoghue v Stevenson, who could sue on behalf of Mrs. Donoghue?

  The friend who bought the ginger beer.
• What must a party provide to sue or be sued under a contract?

  Consideration.
• Which cases support the principle that a party must provide consideration to sue?

  Dunlop v Selfridge and Tweddle v Atkinson.
• What are the exceptions to privity in common law?

  • Agency: Another person is authorized to make contracts on behalf.
  • Collateral: A second contract alongside the main contract.
  • Restrictive Covenants: Agreements that restrict actions related to land.
  • Holiday Cases: Anyone who suffered can receive damages.
• What is the significance of Shanklin Pier v Detel Products?

  It illustrates the concept of collateral contracts.
• What do restrictive covenants pertain to?

  Land agreements that restrict someone from doing something.
• Which case is associated with restrictive covenants?

  Tulk v Moxhay.
• What does the Contracts (Rights of Third Parties) Act 1999 enable?

  Third parties to enforce contractual terms in certain circumstances.
• What are the two main aspects of the rule of privity?

  Third parties can't be burdened or enforce benefits from the contract.
• What does s1(3) of the Contracts (Rights of Third Parties) Act 1999 require?

  The third party must be expressly identified as a member of a class.
• What is the significance of Nisshin Shipping v Cleaves?

  It clarifies the enforceability of benefits for third parties.
• What does s1(5) of the Contracts (Rights of Third Parties) Act 1999 state?

  Where a benefit is conferred, the third party is treated as if included at the contract's creation.
• What was the situation before the 1999 Act regarding third-party rights?

  There were no general rights for third parties.
• What are the implications of the 1999 Act on third-party rights?

  • More general rights for third parties.
  • Easier to understand and apply.
  • May still be unclear when a contract grants enforceable rights.
• How have holiday cases adapted to modern contract law?

  They allow anyone who suffered to receive damages, not just the person who booked.
• What is a potential drawback of the numerous exceptions to the rule of privity?

  They make the law more complex.
• What was the retrospective effect of the 1999 Act?

  It addressed issues that existed before the Act regarding third-party rights.
• How did the 1999 Act change the landscape for third-party rights?

  It provided clearer rights and more opportunities for enforcement.