OCR A2 Law - The Law of Contract - Privity (4)

7. "The Rule in Dunlop v Lambert": This shows courts will grant relief to a 3rd party where a rational legal system ought to compensate a person. CASE: "Darlington BC v Wiltshier". In this case the town of Darlington wanted a sports centre but due to financial difficulties hired Morgan Grenfell who hired Wiltshier to build the sports centre. In this case Wiltshier was the 3rd party and delivered a defective sports centre. There was a rational legal system which allowed them to sue resulting in the builder compensating the council even though the council wouldn't usually be able to sue due to the lack of Privity.

8. Restrictive Covenant: Applies to restrictions on land. Covenant gets passed to land owner regardless of whether they were in the original contract or not. CASE: "Tulx v Moxhay". In this case claimant sold the land to 'x' on the condition he didn't build anything on it. Moxhay built on the land anyway as he claimed he wasn't a party to a contract. HELD: The restriction on building applies to anyone who buys the land, so long as there was an "assurance" made by the 3rd parties.

9. Collateral Contracts: Collateral contracts allows a person to 'enter' more 'serious' contracts on a reliance of others. CASE: "Shanklin Pier v Detel Products". In this case a pier company employed a painter to paint the pier with a specific paint due to a promise made by Detel Products. The paint was held to be unstable and as a result of this Detel was liable for the loss suffered and pier company successfully sued as there was an "assurance" made by the 3rd parties.