Privity

• What does privity mean?

  Only a person privy or party to a contract can sue on it (Dunlop v Selfridge)
• Who cannot sue?

  A 3rd party who benefits from it as they are not privy to it
• In what case were tyres sold to Dew who sold them to a 3rd party?

  dunlop v Selfridge
• In what case Bs wife could not sue even tho she benefits from the contract as it was made between B and his nephew?

  Beswick v Beswick
• In what case could the son not sue even though he benefits from the contract as it was made between the 2 fathers?

  Tweddle v Atkinson
• What act gives the rights of 3rd parties?

  The Contract (Rights of 3rd parties) Act 1999
• What does S1(1) states?

  A person not party to a contract may enforce a term if the contract expressively states this and it declares a benefit on him.
• How is a 3rd party expressly identified?

  by name / class / description, but need not exist at the time of the contract
• What does S1(2) state?

  The parties must intend the term to be enforced by a 3rd party (Nisshin Shipping v Cleaves)
• What are collateral contracts?

  a second contract is found to avoid privity

  artificial way of providing rights to a 3rd party
• In what case was a 2nd ccontract found as they had given a warranty for the paint even though the painters bought it?

  Shanklin Pier v Detel Products
• What are special cases?


  Cases confined to very specific holiday situations
• In what case J could claim for his whole family?

  Jackson v Horizon Holidays
• What is meant by agency?

  An agent acts on behalf of the principal A.
• What does an agent do?

  Enters contracts on behalf of A with B but the contract is between A and B.
• What can the agent not do?

  Cannot sue nor be sued
• What case is an exmaple of agency?

  The Eurymedon
• What is meant by trust?

  A contract is made between 2 parties but a 3rd party benefits. Their right to this benefit is held in trust by one of the parties. The 3rd party can take action.
• What case is an example of trust?

  Les Affreteurs