Privity

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Created by
Mills

Cards (11)

  • Only those party to a contract can claim under it.
    Dunlop v Selfridge
  • Exceptions to privity include:
    1. Expect a party to make a contract on behalf of themselves and others
    2. When a person is acting as an agent for another
    3. A collateral contract is made
    4. When a promise not to do something moves with the land
    5. Being named or identified within the contract
  • Jackson v Horizon Holidays: Making contracts on behalf of themself and others.
  • Shanklin Pier v Detel Products: Collateral contracts
  • Scruttins v Midlands Silicones: An agent is a party to the contract with the third party.
  • Tulk v Moxhay: Restrictive covenants.
  • Contracts (Right of Third Parties) Act 1999: A person who is not a party to a contract may sue or be sued in respect of the contract.
  • s1(1)(3) C(RTP) 1999: Third party expressed by name or matching a description.
  • s1(1)(a) C(RTP) 1999: Expressly says a third party can enforce the contract.
  • s1(1)(b) C(RTP) 1999: The contract term is an attempt to confer the benefit of the term on the third party.
  • s1(2) C(RTP) 1999: If it’s clear the parties did not want a third person to benefit, the third party cannot benefit.