privity

• privity of contract- only those who are parties to a contract are bound by it and can benefit from it.
• rule of privity seen in Dunlop V Selfridge
• Jackson V Horizon Holidays- courts have tried to find ways of privity causing injustice.

  The rule would prevent all members of a family party claiming as the claimant had made the booking for everyone.
• general exceptions when the rule of privity does not apply:

  • agency
  • collateral contracts- second contract alongside the main agreement. Shanklin Pier
• Contracts Right Of Third Parties Act 1999:

  under s1 someone who is not party to the contract may enforce the contract against either or both of the actual parties to the contract if:

  • the 3rd party is expressly identified by name
  • the contract expressly provided the third party can enforce the contract
  • the contract term is an attempt to confer the benefit of the term of the third party
• Beswick V Beswick - contract right of third parties act 1999