privity of contracts

• What did the House of Lords disagree with Lord Denning MR about?

  Third parties suing to enforce contract benefits
• Who could enforce the nephew’s promise to pay an annuity?

  1. Beswick as Mr. Beswick's administratrix
• What is required for consideration in a contract?

  Consideration must move from the promisor
• What case established that consideration is the price for which a promise is bought?

  Dunlop Pneumatic Tyre Co Ltd v Selfridge & Co. Ltd
• What does the phrase 'something for something' refer to in contract law?

  It refers to the exchange of value in contracts
• Why should the burden of a contract not be placed on a third party?

  It invades individual liberty
• What is the rationale behind the doctrine of privity?

  Only parties to a contract can enforce it
• In Jackson v Horizon Holidays, what was the plaintiff entitled to sue for?

  His own loss and disappointment
• What did Lord Denning state about contracts made for the benefit of a third party?

  A can sue for B's benefit if contracted
• What happens if A breaches a contract made for the benefit of C?

  B may sue A for damages for breach
• In Linden Gardens Trust Ltd v Lenesta Sludge Disposals Ltd, who could recover damages?

  B could recover damages for C's loss
• What was the outcome of Panatown's claim against McAlpine?

  C was only entitled to nominal damages
• What did the exemption clause in New Zealand Shipping Co Ltd v AM Satterthwaite & Co Ltd cover?

  It covered all involved in the carriage
• What is a collateral contract?

  A separate contract based on main contract promises
• What is the general principle of agency?

  He who acts through another acts himself
• In Shanklin Pier Ltd v Detel Products Ltd, who could recover damages?

  The plaintiffs could recover damages against defendants
• What does the tort of negligence provide for third parties?

  Relief for personal injury from defective goods
• What was the significance of Donoghue v Stevenson?

  Manufacturers owe a duty of care to consumers
• What are the main criticisms of the privity doctrine?

  It prevents third parties from enforcing contracts
• What did the Law Revision Committee suggest about contracts benefiting third parties?

  They should be enforceable by third parties
• What is the issue with multiparty contracts in relation to the privity doctrine?

  It may not align with modern commercial practices
• In Clarke v Dunraven, what was the outcome regarding the yacht owners' liability?

  Each owner was liable for damages
• What does the common law doctrine state about third parties in contracts?

  They cannot impose burdens or receive benefits
• What are the established exceptions to the doctrine of privity?

  • Collateral Contracts
  • Agency
  • Trust
  • Tort
  • Assignment
  • Negotiable instruments
  • Statutory Exceptions
• What are the statutory exceptions related to third-party rights?

  • Law of Property Act 1925 (s 136)
  • Bills of Exchange Act 1882 (s 29)
  • Married Woman’s Property Act 1882 (s 11)
  • Carriage of Goods by Sea Act 1992 (s 2)
• What are the arguments against the privity doctrine?

  1. Prevents third parties from enforcing contracts
  2. Numerous exceptions undermine the rule
  3. Needs abolition or modification
  4. Not aligned with modern multiparty contracts
• What is the purpose of a contract made for the benefit of the other spouse?

  To benefit the other spouse
• What rights does a holder of a bill of lading have under the Carriage of Goods by Sea Act 1992?

  All rights of suit under the contract
• In Lumley v Guy [1853], who was promised higher payment?

  1. Wagner
• What was the outcome of Lumley v Guy regarding the defendant's liability?

  The defendant was held liable in tort
• What case established the principle of restrictive covenants running with the land?

  Tulk v Moxhay [1984]
• What does the Competition Act 1998 prohibit?

  Fixing of minimum price
• What is the primary purpose of the Contracts (Rights of Third Parties) Act 1999?

  To give effect to the intention of parties
• What does the Contracts (Rights of Third Parties) Act 1999 allow parties to do?

  Provide enforceable benefits to third parties
• What must a third party be to enforce a contract under the Contracts (Rights of Third Parties) Act 1999?

  Expressly identified in the contract
• In Avraamides v Colwill, why could A not enforce rights against C?

  A was not expressly identified in the contract
• What does Section 1(3) of the Contracts (Rights of Third Parties) Act 1999 state about third parties?

  They must be expressly identified by name
• What does Section 1(1)(b) of the Contracts (Rights of Third Parties) Act 1999 allow?

  A third party to enforce a contractual provision
• What is the definition of "purports" as used in Prudential Assurance Co Ltd v Ayres?

  To express or set forth
• In Nisshin Shipping Co Ltd v Cleaves & Co Ltd, why was Cleaves entitled to enforce the agreements?

  The commission clause clearly stated payment to Cleaves