OCR A2 Law - The Law of Contract - Privity (3)

3. Trusts: Trusts are also an exception. Trusts can be enforced to a 3rd party provided they fulfil the requirements of that trust. The conditions that may be placed on a trust include age; education and marriage.

4. Agenices: If a company employs an agent and he makes a contract with a customer, then they're bound by that contract. In other words it allows a 3rd party to sue.

CASE: "Lockett v Charles". In this case the claimant took his wife to a restaurant who got food poisoning. HELD: husband was acting as the wife's agent ... she can sue.

5. Statutes: Some statutes (i.e. Acts of Parliament) can give 3rd party rights. The relevant statue however, is "The Road and Traffic Act 1998" which ensures a motorist to take out 3rd party insurance. This is to protect 3rd partis in the unlikely event of an accident.

6. Insurance:

• Life Insurance: Is made for the benefit of the 3rd parties involved.
• Car Insurance: Used to protect 3rd parties in the unlikely event of an accident.