What is the definition and general rule of Privity?
Tweedle v Atkinson - Privity is the concept that contracts can only be enforced by those who have given consideration
What are the Common law exceptions?
- Agency
- Restrictive covenants that run with land
- Damages of behalf of another
- Collateral contracts
How does Agency work?
Agency works by treating the agent and the principal as if they are legally the same person, so any contract with an agent is actually with the principal.
Case law for Restrictive covenants that run with land
Tulk v Moxhay - Covenants run with the land, not the original parties to the agreement, meaning anyone who owns the land becomes party to the covenant
Case law for Damages on behalf of another
Jackson v Horizon Holidays - This case is outdated and usually only used if the situation falls out of the scope of the legislation
Case law for Collateral contracts
Shanklin Pier v Detel Products - When two contracts are made and the second is made because of the first, there is a garentee of quality in the second contract
What is the Act that is relevant to this area of law?
Nisshin Shipping v Cleaves - Contracts (Rights of Third Parties) Act 1999
What does s1(1)(a) say?
A third party can enforce rights where the contract expressly states they can
What does s1(1)(b) say?
A third party can enforce rights where the contract purports a third party should have rights
What does s1(b)
If the contract expressly states that a third party doesn’t have rights
