Privity

Question 1

Tweddle v Atkinson (1961)

Answer 1

Two fathers agreed to pay money to the groom (Tweddle), but only the fathers were parties to the contract. When one father died, Tweddle sued the executor (Atkinson) for the money. The court held he could not enforce the contract as he was not a party to it—establishing the principle of privity of contract.

Question 2

Beswick v Beswick (1968)

Answer 2

Mrs. Beswick was the widow of Mr. Beswick, who had made an agreement that his nephew would pay her a weekly sum after his death. Upon his passing, the nephew refused to honor the agreement. Mrs. Beswick sued for the payment, and the court held that she could enforce the agreement as a third-party beneficiary, despite not being a party to the original contract. The case highlighted the enforceability of contracts for the benefit of non-signatories.

Question 3

Nisshin shipping Co Ltd v Cleaves & Co Ltd (2003)

Answer 3

the court dealt with a dispute over a brokerage commission for the chartering of a vessel. Cleaves & Co. were claiming commission for successfully introducing a charterer, while Nisshin Shipping argued the commission was not due because the charter was not concluded. The court ruled in favor of Cleaves, holding that the brokerage commission was owed because the introduction was a sufficient cause for the agreement, even though the charter had not been finalized.