privity

Question 1

what is privity of contract

Answer 1

only a person who is part of a contract can sue on the contract

Question 2

what is the general rule of privity

Answer 2

tweddle v atkinson - only a person who is party to a contract can sue on it

Question 3

what case gives the basic rule of privity

Answer 3

tweddle v atkinson

Question 4

how many exceptions are there to the rule of privity

Answer 4

4

Question 5

what are the 4 exceptions

Answer 5

agency
restrictive covenant
damages on behalf of others
collateral contracts

Question 6

what are the four stages of privity

Answer 6

the general rule
4 common law exceptions
2 exceptions in statute
one exception to the exception in statute

Question 7

what is the first common law exception

Answer 7

agent

Question 8

what is a person who enters into a contract on behalf of another (E.G estate agent)

Answer 8

an agent

Question 9

why does an agent entering into contract for another party involve privity

Answer 9

the agent makes the contract on behalf of their client, so technically the contract is between the agent and the other party. in reality, the agreement binds you as well.

Question 10

what is the second common law exception

Answer 10

restrictive covenant

Question 11

what is a restrictive covenant

Answer 11

a promise not to do something tied to a piece of land, passed from owner to owner

Question 12

what case is used for restrictive covenants

Answer 12

tulk v moxhay

Question 13

what is the third common law exception

Answer 13

damages on behalf of others

Question 14

what case is used for damages on behalf of others

Answer 14

jackson v horizon holiday

Question 15

why is damages on behalf of others very limited

Answer 15

the wife and children in jackson v horizon holiday were not part of the contract in any way

Question 16

what is the fourth common law exception

Answer 16

collateral contracts

Question 17

what is a collateral contract

Answer 17

a contract created directly as a result of another, and the second contract involves a guarantee of quality which is not met.

Question 18

what case is used for collateral contracts

Answer 18

shanklin pier v detel products

Question 19

what two contracts were in place in shanklin pier v detel products

Answer 19

shanklin - contractor contractor - detel

Question 20

why could shanklin sue detel regardless of that they did not have a contract with them

Answer 20

shanklin had a contract with the contractor, who had a contract with detel as a result. detel gave the contractor a guarantee of quality which was not met

Question 21

what act is important for privity

Answer 21

contract (rights of third parties) act 1999

Question 22

what is the purpose of the contract (rights of third parties) act 1999

Answer 22

to protect third parties in contracts by allowing them to enforce a contract in two situations

Question 23

what is the first (1.1.a) situation where a third party can enforce a contract under the contract (rights of third parties) act 1999

Answer 23

where the contract specifically states a third party may enforce the contract

Question 24

what is the second (1.1.b) situation where a third party can enforce a contract under the contract (rights of third parties) act 1999

Answer 24

where there is a term in the contract which intends to create a benefit for a third party

Question 25

what case is used for when A does not apply but B does

Answer 25

nisshin shipping v cleaves

Question 26

what is the exception to (1.1.a/b) under the contract (rights of third parties) act 1999

Answer 26

(1.2) where the contract specifically states a third party cannot sue under the contract

Question 27

what are the 8 total things involved in privity

Answer 27

1. general rule - tweddle v atkinson 2. agent 3. restrictive covenant - tulk v moxhay 4. damages on behalf of others - jackson v horizon holidays 5. collateral contracts - shanklin pier v dettel 6. the contract states a third party can enforce it - 1.1.a 7. it is implied a third party can enforce it - 1.1.b 8. 1.1.a/b do not apply if specified a third party cannot enforce - 1.2

Question 28

what order is a privity 20 mark explained in

Answer 28

identify parties define privity explain general rule apply general rule explain all exceptions and statutes apply all relevant exceptions