Privity

Question 1

General rule

Answer 1

Contractual rights and liabilities affect only the parties privy to the contract and a person who is not party can neither sue nor be sued under the contract.

Question 2

(Tweddle v Atkinson)

Answer 2

The rule of consideration must move from the promisee. A person to whom a promise is made can only enforce the promise if they have provided consideration for it.

Question 3

Exception (1/2) agency

Answer 3

An exception arises when an agent in authorised to make a contract on behalf of someone else.

Question 4

Exception (2/2) Act

Answer 4

Contract Rights of Third Parties Act 1999
Third party can sue if:

s3 - third party expressly identified in the contract

OR

“purports to confer a benefit” on a third party - for example, if a supply
contract between manufacturer and dealer states that consumers (third parties) are
protected by a product guarantee. However, in this case, a right will not arise if it is clear that the parties do not intend the term to be enforceable by the third party.