privity

• Contract


  Cannot confer rights nor impose obligations on someone who is not a party to the contract
• Exceptions to the privity of contract rule

  • Contracts (Rights of Third Parties) Act 1999
  • Jackson v Horizon Holidays Ltd (1975)
  • Agency
  • Collateral contracts - Shanklin Pier Ltd v Detel Products Ltd (1951)
  • Restrictive covenants - Tulk v Moxhay (1848)
• Contracts (Rights of Third Parties) Act 1999


  A third party can enforce a contract against either/both parties if: 1(3) - 3rd party is expressly identified by name or class of a description, and 1(1)(a) - the contract states that 3rd party can enforce the contract, OR 1(1)(b) - the term in the contract indicates a benefit on the 3rd party
• Privity of contract


  Can have the potential to create injustice, which the courts have tried to avoid
• Privity of contract


  Is linked to the rule that consideration must move from the promisee