What is the rule of privity in contract law?
Only people who are parties to a contract can enforce or be bound by it.
What case shows the basic rule of privity?
: Dunlop v Selfridge – Dunlop couldn’t sue because it wasn’t a party to the retailer’s contract.
How is privity linked to consideration?case
Consideration must move from the promisee – someone who hasn’t provided consideration can’t enforce the contract.
📌 Tweddle v Atkinson – son couldn’t sue for father-in-law’s promise
How do you identify a privity issue in a scenario?
Look for someone trying to enforce a contract they were not a party to.
STATUTORY EXCEPTION – Contracts (Rights of Third Parties) Act 1999
What does the Contracts (Rights of Third Parties) Act 1999 allow under s1(1)
: A third party can enforce a contract if
They are clearly named
Oh, they are clearly described in a way that identifies them
And the contract Eva states they can enforce it or
gives them a benefit
STATUTORY EXCEPTION – Contracts (Rights of Third Parties) Act 1999
What does s1(2) of the 1999 Act say?case
If the original parties expressly exclude third-party rights, then the third party cannot rely on the Act.
STATUTORY EXCEPTION – Contracts (Rights of Third Parties) Act 1999
What case supports third-party enforcement under the Act?
Dolphin & Maritime v Sveriges – the third party was expressly identified and could enforce the term.
COMMON LAW EXCEPTIONS – C.A.R.S
What is a collateral contract?case
A second contract that runs alongside the main one, allowing a third party to enforce a promise if there’s valid consideration.
📌 Shanklin Pier v Detel
🔹 COMMON LAW EXCEPTIONS – C.A.R.S
What is an agency exception to privity?
: If an agent makes a contract on behalf of a principal, the principal can enforce it, even though they didn’t sign it.
🔹 COMMON LAW EXCEPTIONS – C.A.R.S
What is the restrictive covenant exception?case
In land law, a restrictive covenant can bind future owners even if they weren’t part of the original contract.
📌 Tulk v Moxhay
🔹 COMMON LAW EXCEPTIONS – C.A.R.S
What are the “special cases” where someone can sue on behalf of others?case
Where a contract clearly intends to benefit third parties, e.g. holiday cases.
📌 Jackson v Horizon Holidays
What must you do when concluding a privity ILAC answer?
Decide if the third party can enforce the contract under statute or common law exception and whether the contract is enforceable for them.
