privity Flashcards
(7 cards)
what is privity
when only the parties who enter the contract are bound to the contract and it’s benefits
(dunlop v selfridge)
what may the courts try to do
avoid the strict rule of privity (Jackson v Horizon Holidays - where his family could claim even if they were not parties to the contract if the law was strictly applied)
exceptions where privity doesn’t apply
- agency
-collateral contract
-restrictive covenant
agency
When someone is authorised to make a contract on behalf of another. They are still bound by the terms of the contract.
collateral contract
Where the courts can find a second contract alongside the main contract, which parties can still benefit from. In the case of Shanklin v Detel
restrictive covenant
An agreement where a party will stop the use of its land to other people (tulk v moxlay) - where the covenant ran with the land and the person was bound by it).