Privity to contract

• The general rule in contract law is only parties privy to the contract are bound by it and can benefit from it. This means third parties cannot benefit
• Who cannot benefit from the general rule in contract law where only parties privy to the contract are bound by it and can benefit from it?


  Third parties
• What is the general rule in contract law in relation to privity

  Only parties privy to the contract are bound by it and can benefit from it thus excluding third parties
• Exception to the privity rule

  Administrators to another’s estate can sue on their behalf
• Exception to privity rule

  Third party trusts
• Restrictive covenant


  restrictions placed on what can be done with land/building
• Exception to the privity rule

  Agency principal
• Agency principal


  Where an 'agent' is authorised to make a contract on behalf of another person
• Collateral contract


  one that induces a person to enter into a main contract or depends on the main contract for its existence.
• Statute


  Contract (Rights of Third Parties Act) 1999
• What does the Contract (Rights of Third Parties Act) 1999 allow?

  allows those who are not party to a contract (a third party) in some circumstances to enforce a contract.
• What are the circumstances in which the Contract (Right of THird Parties Act) 1999 can occur

  • the contract expressly provides he may
  • the term purports to confer a benefit on him”
  • the third party is expressly identified in the contract by name, or as a member of a class, or answering a particular description.