Privity

Question 1

what is the basic rule of privity?

Answer 1

only those who are a party to a contract are able to sue under it

Question 2

what are the 3 most common situations in privity?

Answer 2

• sale of gods
• contractors/sub-contractors
• contracts made for other people

Question 3

what does tweddle v atkinson say?

Answer 3

only a person who is a party to a contract can sue under it

Question 4

what are the 3 reasons that liability being passed down the chain may not work?

Answer 4

• the subcontractor or manufacturer may go bankrupt
• the relevant party cannot be found
• there may be an exclusion clause in their contract with the main contractor

Question 5

what are the 2 types of exceptions to the basic rule?

Answer 5

• common law exceptions
• contracts ( rights of third parties ) act 1999

Question 6

what are the common law exceptions?

Answer 6

• agency
• damages on behalf of another
• restrictive covenants that run with the land
• collateral contracts

Question 7

what does tulk v moxhay say about restrictive covenants that run with the land

Answer 7

that restrictive covenants are promises NOT to do something on land, and that it applies to whoever owns the land there-fourth

Question 8

what is the case for damages on behalf of another?

Answer 8

jackson v horizon holidays

Question 9

what are collateral contracts?

Answer 9

when person A enters a contract with person B, then person B enters a contract with person C specifically due of the contract with A, it allows them to sue if C has made a guarantee or assurance of quality to A

Question 10

what is the case for collateral contracts?

Answer 10

shanklin pier v detel products

Question 11

what does section s1(1)(a) of contracts say?

Answer 11

that 3rd parties can enforce rights where the contract expressly states that a thirs party can enforce ( the contract literally identifies the people who can sue under it )

Question 12

what 3 things are there to prove in collateral contracts?

Answer 12

• there are 2 contracts in existence
• the second contract was made specifically because of the first contract
• the second contract involved a guarantee of quality to the party trying to sue

Question 13

what section of section s1(1)(b) of contracts say?

Answer 13

that 3rd parties can enforce rights where a contract purports/intends to confer a benefit on a third party (contract doesn’t specifically say they can, but suggests it)

Question 14

what does section s1(2) of contract say?

Answer 14

that person A and person B can also exclude third party rights if they specifically put this in their contract

Question 15

what is the case for contracts (rights of third parties) act 1999?

Answer 15

misshin shipping v cleaves