Privity and Third Parties in Contract

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  • Privity and Third Parties In Contracts
    • The Contracts (Rights of Third Parties) Act 1999
      • S 1 (1) (A) TP can enforce contracts where given an express right to do so in the contract
      • s I1) (1B) TP can enforce contract where the contract intends to confer a benefit on TP
      • S1 (3) T must be designated by name, class or description
      • S 1(4) TP can only enforce to terms of the contract
      • S 1 (5) TP has same remedies as other parties
      • Defenses for Third Parties
        • S 3(2) has same defenses as other parties
        • S 3(4) Promisor has same defenses as if TP was a party
      • S2(3) states the right of TP's cannot be extinguished once he has communicated his assent, once promisor knows he has relied or reasonably forseen reliance
    • "Only a party to the contract can generally enforce it" - Tweddle v Atkinson [1861]
      • Joint promises to more than one party means they are not a TP - Coulls v Bagot [1967]
      • Collateral contracts through an agent can remove TP label - "The Eurymedon" [1975]
      • When B is a Trustee to A, he isn't a TP (express statements are needed) - Re Schebsman [1944]
      • Executors of wills remove TP - Beswick v Beswick [1968]
    • Suing for Damages
      • Cannot sue for damages for losses of a TP - Woodar Investments [1980]
      • Cannot sue on behalf of TP unless act affected whole family - Horizon Holidays [1975


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