Privity past paper

‘The rule of privity can cause injustice but reforms in both statute and common law

have helped to avoid this injustice’.

Discuss the extent to which this statement is true. [50]

Mark Levels AO1 AO2 AO3

Level 5 21-25 17-20 -

Level 4 16-20 13-16 5

Level 3 11-15 9-12 4

Level 2 6-10 5-8 3

Level 1 1-5 1-4 1-2

Potential answers MAY:

Assessment Objective 1 (25)

Explain the rules of privity:

 That a contract can only be enforced by and against the parties to the contract,

Tweddle v Atkinson, Dunlop v Selfridge;

 Candidates may explain that the rule comes from the need for the parties to have

given consideration to the agreement in order to enforce it.

Explain the exceptions developed by the courts:

 The trust device; where an implied trust was used to avoid the rules of privity,

Les Affreteurs Reunis v Walford;

 Restrictive covenants; where restrictions on the use of land can be passed to

subsequent purchasers, Tulk v Moxhay;

 Collateral contracts; where a new contract was imposed by the court between a

person making a representation and the person who acted on that

representation, Shanklin Pier v Detel Products;

 Special cases, where the courts have decided that one person may sue to

recover losses suffered by another party, Jackson v Horizon Holidays, Woodar v

Wimpey, Linden Gardens Trust v Lenesta Sludge;

 Credit can also be given…