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Contract 1 privity

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Page 1: Contract 1 privity

Privity

Page 2: Contract 1 privity
Page 3: Contract 1 privity

1) Laws of Succession -

administratix

•Beswick v Beswick –

widow sued to enforce

promise of payments by

the husband but as the

wife was not privy to the

contract, however as the

adminstratix she was

successful

2) Law of subrogation

•Relating to insurance

contracts

•Guarantor has the same

rights as the principle

against the debtor

3) Law of property

•Purpose of the law of

property was to

consolidate enactments

relating to conveyances.

No drastic changes is

intended so that the

presumption as seen in

Beswick could only be

rebutted by clear

language

•There was a devisive

rejection of the scope of

s56(1) in the ruling in

Beswick

Page 4: Contract 1 privity

4) Laws of Trust

•Property held by one

person for another

Lloyds v Harper

where the father

formed a contract to

ensure that his son

will be employed by

Lloyds and the court

agreed that where

this contract is made

the son should be

able to recover as if

the contract was with

the son himself

5) Law of Agency

•Agent may contract

on the part of the

principal

•Guarantor has the

same rights as the

principle against the

debtor (Scrutton v

Midland – stevedores

attempted to rely on

an exclusion clause

between the shipping

company and the

Plaintiffs but could

not succeed.

However Lord Reid

suggested that they

could be brought

into contractual

relations. See below

6) Law of Tort

•Persons does not

have the right to go

against contracting

parties beyond there

entitled benefits.

(Donoghue v

Stephenson)

Statutes eg

•Married women Acts

• Insurance acts

•Road Traffic Acts

Page 5: Contract 1 privity

Lack of clarity (beswick v

Beswick – widow was allowed

to sue as administratix and

could calim under the law of

property

Tension between the literal

and purpose rule as seen in

Beswick where the

interpretation of the property

act was concerned

Language was broad in

terms of the property Act

which was used with some

reluctance by the House of

Lords

Page 6: Contract 1 privity

Consideration –

Privity bars a

claim despite

consideration

Equity – Privity is

not very rigid

with equity.