privity to a contract Flashcards
(7 cards)
what is the general rule of privity?
the general rule of privity of a contract is that only parties to a contract can acquire rights and liabilities under the contract
Dunlop v Selfridge
if you are not a party to a contract then you cannot sue or be sued under it.
- the courts said that it would be unfair to let 2 parties make a contract that binds a third party when they aren’t privy to the details
Tweedle v Atkinson
tweedle deez nuts
What are the common law exceptions?
Agency: agreement that is made on someone else’s behalf
Scrutiny: Its v Silicones LTD - carrier was not an agent because it was a completely separate contract
Collateral Contract: contract that goes alongside the original contract
Shanklin Pier v Detel Product
restrictive covenants: term of an agreement of how to deal with the land that stay with the land
What are some statutory exceptions?
- Contract (rights of the third parties) Act 1999
- someone who isn’t part of the original agreement can claim rights under the agreement if:
- the person if expressly named or a description
- the contract is created to benefit a third party
Beswick v Beswich
- example case form before 1999
- She couldn’t claim then but these elements would let her now