privity

Question 1

what is the basic rule of privity

Answer 1

A person cannot be subject to a burden under a contract to which they are not a party and cannot sue on a contract to which they are not a party even if the object of the contract is for their own benefit Tweddle v Atkinson

Question 2

what are the common law exceptions

Answer 2

Agency
Collateral Contracts
Restrictive Covenants
Holiday cases

Question 3

agency

Answer 3

it allows a person to authorise another to make contracts on their behalf.

Question 4

collateral contracts

Answer 4

contracts that are independent contracts and are made between the two parties to a separate agreement or between one of the original parties and a 3rd party
Shanklin Pier v Detel

Question 5

restrictive covenant

Answer 5

When land is bought and sold there is often a clause in the deeds that restricts a person doing something.
This clause is called a restrictive covenant, and it will run with the land
Tulk v Moxhay

Question 6

holiday cases

Answer 6

jackson v horizon holidays

Question 7

statutory exceptions

Answer 7

The Road Traffic Act 1930 - allows a victim of physical injury to sue the insurance company directly and to recover from the policy

Contracts (Rights of Third Parties) Act 1999:
s1(1) explicitly gives a right of enforcement to ‘a person who is not a party to a contract his own right if a term of the contract:

s1(1)(a) expressly provides that he may
s1(1)(b) if the contract purports to confer a benefit on him.