Privity

Cards (7)

  • Privity - only those who are a party to the contract and are bound by it can sue under it (Dunlop v Selfridge)
  • Courts will allow exceptions to this rule e.g. Agency (Jackson).
  • Exclusion clauses only protect parties to the contract, not subcontractors (Scruttons)
  • The courts may find a second contract alongside the main one - Collateral contracts (Shanklin pier).
  • Restrictive convenants remain with the land to which they refer (Tulk).
  • The Contracts (Right of Third Parties) Act 1999 gives those who benefit from a contract but are not a party to it the right to sue under that contract.
  • This is provided
    • the third party is expressly named or fits a description
    • the contract provided for a third party to enforce it
    • the contract is an attempt to benefit the third party