privity

• what is the strict privity rule? 


  only those who are parties to a contract are bound by it, can benefit from it and sue on it
• key case for strict privity rule 


  Dunlop v Selfridge
• cannot sue if not giving consideration 


  Theddle v Atkinson
• example of third party with no privity, how would this case be decided now?


  Beswick v Beswick; wife would be allowed to sue now under Contracts (Right of Third parties) Act 1999
• can sue on behalf of family unit


  Jackson v Horizon
• what was established in Woodar v Wimpey? 


  Jackson case is specific to family cases
• where parties have knowledge that damage is foreseeable to third party, they may sue 


  Linden Garden v Lenesta
• what are the 4 common law exceptions to strict privity? 


  Collateral contracts

  Agency

  Restrictive covanents

  Statutory exceptions
• can sue third party in collateral contracts


  Shanklin Pier v Detel
• is "subcontracting" collateral? 


  NO
• what is agency? 


  where principle authorises an agent to make a contract on their behalf
• what are principle and agent regarded as? 


  one entity, even if principal didn't make contract
• what are restrictive covanents? 


  terms that run with the land/property AKA whatever you cannot do to the land
• restrictive covanents run with the land and bind any owner


  Tulk v Moxhay
• give 3 statutory exceptions


  Married Women's Property Act

  Road Traffic Act

  Contract (Right of Third Parties) Act 1999
• which act gives married women the right to property even if its in her husband's name?

  Married Women's Property Act
• which act gives third parties the right to enforce an insurance policy? 


  Road Traffic Act
• s.1(1)(3) of CRTA 1999

  1. someone who is named in the contract or belongs to a particular description (e.g unborn baby)
• s.1(1)(a) of CRTA 1999


  2. AND contract actually says this person can enforce the contract
• third party can only sue where contract benefits them 


  Dolphin v Sveriges
• s.1(2) of CRTA 1999


  parties can include an exclusion clause that CRTA 1999 will not apply in their agreement, so long as it is reasonable it will stand
• what does s.1(2) do?

  stops third parties from being able to sue
• example of s.1(2); exclusion clause must be included to prevent third party suing if contract benefits them 


  Nishin Shipping v Cleaves
• s.1(1)(b) of CRTA 1999


  3. OR contract intends that this person will benefit in some way