Privity

Question 1

Privity of contract

Answer 1

Only the parties to a contract are bound by it and can benefit from it: Dunlop. Rule is relaxed by the courts in various ways

Question 2

Family

Answer 2

Family members can be included within a contract if the contract benefits all of them e.g. holiday: Jackson

Question 3

Agent

Answer 3

Agent is authorised to make a contract on behalf of another person, the principle. Often the agent will be an employee and the principle will be the employer

Question 4

2nd collateral contract

Answer 4

Alongside the main agreement then Privity can be avoided: Shanklin Pier Ltd.

Question 5

Restrictive covenants

Answer 5

Are agreements between landowners that one party will restrict the use of their land for the benefit of another (a third party). This would form part of the contract for the sale and purchase of the land and the covenant runs with the land so binds all future purchasers: Tulk