privity ao1

Definition

Doctrine of priviity states that parties in the contract can sue or be sued

No third party can get involved even if it benefits them

Dunlop pneumonic tyres

Held Dunlop couldn’t sue as they weren’t part of the contract

Beeswick

Held she couldn’t sue as she wasn’t part of the contract- could sue for representation

Special cases

Jackson v holiday- held that he could sue for himself and his family even though they weren’t part of contract

Third part act 1999

3 exceptions- allowing third parties to enforce contract

If they say they can - s1 (2)

If terms benefit them s1 (1)

Third party must be named, identified, and part of class in the contract s1 (3)

Common law exceptions

Agency- make contract under principle, principle can get involved even if they were not involved in it

Collateral contract- separate promise- separate from contract - third party can get involved - shankin pier

Restrictive convenance- how the land is used- owner can bind others from it even if they weren’t part of original contract