Privity of contract

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  • Created by: luiza sz
  • Created on: 18-04-19 11:39
General Rule
a contract creates rights and obligations only between the parties to such contract (sue and be sued). A third party doesn't acquire a right nor any liabilities under such contract
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General Rule Case
Tweedle v Atkinson / Dunpol v Selfridge
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Exceptions
1) Agency 2)tort- duty of care is owned to TP. 3)Recovery of TP loss
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Exception Cases
Jackson v Horizon Holidays
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Contract Rights of a Third Party Act 1999
proposed by Law Commission, allows parties to avoid rule of privity (eg. a third part can enforce a contract (term) to which he s not a party.
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s.1
an identifies third party may enforce a contract where the contract gives the third part the right to enforce or/ and the contract impliedly gives the third party the right to enforce
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Identified third party
must be expressly identifies in the contract by name, member of. class, as meeting a particular description.
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Contract expressly gives the third party the right to enforce
"TP shall have the right to enforce the contract"
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Contract impliedly gives the this part the right to enforce
where contract claims benefits on third party contracting parties (presumption) intends third party to. have right to enforce. Presumption may be rebutted y express term in contact
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s. 1 (5) Remedies available to third party
where a third party has right to enforce contract, they may claim all remedies as if he were a contracting part (damages or specific performance)
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s.2 Variation/ discharge of contract
where third part has assented to a contract for his benefit or has relied on a contract term for his benefit, the contracting parties may not vary or discharge the contract with our the consent of the third party.
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Other cards in this set

Card 2

Front

General Rule Case

Back

Tweedle v Atkinson / Dunpol v Selfridge

Card 3

Front

Exceptions

Back

Preview of the front of card 3

Card 4

Front

Exception Cases

Back

Preview of the front of card 4

Card 5

Front

Contract Rights of a Third Party Act 1999

Back

Preview of the front of card 5
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