contract law privity

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  • Created by: jake
  • Created on: 27-03-13 12:07
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  • Privity of Contract
    • Doctrine of privity means that a contract connot confer rights or impose obligations under it on any person other then those that are party to it
      • The Doctrine is common law and has rules
        • rule 1. only a promisee may enforce a promise, this means that if  3rd party is not a promisee then he is not privy to the contract
          • Dunlop tyre co v selfridge -
        • Rule 2.  Consideration must move from the promisee
          • Tweedle v Atkinson
          • The rules on privity of contract can cause significant difficulties for both business ad individuals. Due to the fact it often leaves the 3rd party with no legal  remedy , this is still the case where it is clear that the 3rd party was intended to benifit
            • rule 1. only a promisee may enforce a promise, this means that if  3rd party is not a promisee then he is not privy to the contract
              • Dunlop tyre co v selfridge -
            • if the doctrine of privity was inflexibly applied it would cause considerable injustice therefore exceptions have been developed
    • Common law exceptions
      • Collatral Contracts - A contract between two parties may be accompanied by another contract that relates to one of them and the 3rd party that relates to the same subject matter
        • shanklin pier v  Detel products
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