Privity and Third Parties in Contract
- Created by: cephillips
- Created on: 07-05-14 14:12
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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
- The Contracts (Rights of Third Parties) Act 1999
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