Privity

• What does privity mean?

  Only those who are parties to a contract are bound by it and can benefit from it
• What does the case of Dunlop Tyre Co show?

  Third parties can’t sue as they are not party to the contract
• What does the general exception of Agency show in privity?

  An agreement arises when one person is authorised to make a contract on behalf of another
• What are collateral contracts?


  The court may find a second contract alongside the main agreement
• What case example shows collateral contracts?

  Shanklin Pier ltd v Detel products
• When can a contract be enforced by a person not party to a contract?

  If the third party is expressly identified by name

  If the contract expressly provides that the third person may enforce the contract

  The contract term is an attempt to confer the benefit of the term on the third party
• What case shows a need for the rights of third parties Act 1999

  Beswick v Beswick