week 4 - contract law

Question 1

what case is an example of sufficient consideration being present?

Answer 1

thomas v thomas (1842)
Executors of a deceased person’s estate agreed that a house be provided for life for the tenant in exchange for ground rent of £1 per year.
As the £1 had legal value and the agreement was created in a binding contract the consideration is deemed sufficient.

Question 2

what case is an example of exemptions to the privity rule?

Answer 2

jackson v horizon holidays ltd (1975)
Mr j made a complaint against horizon for misrepresentation regarding lack of facilities during a family holiday.
They accepted liability but would only award compensation to mr j and not the family.
As mr j had entered into the contract on their behalf, damages were awarded by court in respect of the whole family.

Question 3

what case is an example of privity of contracts?

Answer 3

dunlop pnuematic tyre co ltd v selfridge + co ltd (1915
- dunlop sold tyres to dew + co under a contract that they cannot sell below a certain price
- dew sold to selfridge under the same condition, they ignored and sold the tyres
- dunlop tried to sue but couldnt as there was no direct contractual relationship between dunlop and selfridge as dew and co had contract with selfridge.