Privity

• Definition

  "only those that are a party to a contract can sue or be sued on it"
• Dunlop v Selfridge

  • a did not have consideration between c, only b and therefore cannot sue by it
• Exceptions to this rule

  • Collateral contract- Shanklin Pier v Detel Products, 3rd party collateral contract
  • Agency- agent doing on behalf of a person is legally binding, Scrutons Ltd v Midland Silicones Ltd
• Reform- Contract (Rights of Third Parties) Act (1999)

  • s.1(a)- the contract expressly provides C may be in it
  • s.1(b)- a term in it gives to confer a benefit on C
  • s.1(3)- must be named or member of class or description