Privitiy

Privity

The main rule; only a party to a contract can sue or be sued on it. This is seen in the case of Dunlop v Selfridge. Dunlop v Selfridge→ In a contract dated 12^th October 1911 Drew & Co, who were wholesalers, agreed to buy tyres from manufactures. They did so on an express undertaking in the contract that they would not sell the tyres below certain prices fixed by the manufactures. Drew & Co also undertook to obtain the same price fixing agreements from clients to whom they sold on. Dew then sold the tyres on to Selfridge on these terms. However, Selfridge broke the agreement and sold the tyres at discount prices. Dunlop sued Selfridge, the third party, and sought an…