Contract Law Uk Privity

Front 1

Dunlop Pneumatic Tyre Co Ltd v Selfridge 1915

Back 1

Dew & Co agreed 2 buy tyres from Dunlop - express undertaking that wldnt sell the tyres below certain prices fixed by manufacturer. Dew also undertook to obtain the same price-fixing agreements with its clients - Selfridge sold at discount price. Dunlop sued S-3rd party and sought an injunction, failed-lack of privity

Front 2

Scruttons v Midland Silicones Ltd 1962

Back 2

D tried to rely on limitation of liability clause in a contract to which he was not a party - unsuccessfully

Front 3

New Zeland Shipping Co Ltd v A M Satterthwaile & Co Ltd (The Eurymedon) 1975

Back 3

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Front 4

Beswick v Beswick 1968

Back 4

nephew promised his uncle t pay an annuity to his Aunty/if Uncle will transfer the goodwill of the business to the nephew. The Aunty-not a party to the contract. Held: could be specifically enforced by the Uncle's personal representative (the Aunty) against the nephew. Damages - purely nominal as the promisee or his estate had suffered no loss. The nephew would have been unjustly enriched by being allowed to retain the entire benefit of the uncle's performance without performing his own promise.

Front 5

Woodar Investment Development Ltd v Wimpey Construction UK Ltd 1980

Back 5

HoL: not expressly overruling Jackson - there is no general principle allowing a party to a contract to sue on behalf of 3rd parties injured by a breach of contract.

Front 6

Jackson v Horizon Holidays 1975

Back 6

J booked a "fam holiday", the booking - in his sole name. Holls - complete disaster, not as in the contract description. Sued not only on his own but on behalf of his family too. Company accepted liability but wld only pay damages to him - no privity of contract. CA: loss of enjoyment suffered by the family was in effect a loss to the contracting party himself. He hd paid for a "fam holiday" but not received it. Damages were awarded on this basis

Front 7

Linden Gardens Trust Ltd v Lenesta Sludge Disposals Ltd 1994

Back 7

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Front 8

Alfred McAlpine Construction Ltd v Panatown Ltd 2000

Back 8

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Front 9

White v Jones 1995

Back 9

In some cases an injured party wld bring an action in tort and avoid the problem of P but he has to prove the elements of tort

Front 10

Les Affreteurs Reunis SA v Leopold Walford (London) Ltd 1919

Back 10

W was a broker who negotiated an agreement b/w a charter party and the owner of the vessel - but- not party of the agreement. The agreement contained a stipulation that W shld receive a 3% commission from the shipowners for securing the agreement. Failed 2 pay, W sued for commission. The court accepted - a trust was created only because he was named as receiving a benefit under the agreement

Front 11

Green v Russel 1959

Back 11

Employer had insurance in his own name which also covered certain employees including Green and ws expressed as being for the benefit of dependent relatives. But - no such requirement in the contract of employment. Both men killed in a fire - Insurance company did not pay Green's wife. CA held - there ws no trust in favour of Green's wife coz the employer cld hv surrendered the policy at any time.

Front 12

Nishin Shipping Co Ltd v Cleaves & Co Ltd 2003

Back 12

Held: C, chartering broker, was entitled under s1(1) of the Act to enforce a clause in a charterparty which conferred on it a benefit of 1% commission since the charterparty did not express any contrary intention and there was no evidence that it was the mutual intention of the contracting parties that C shld nt b entitled to bring a direct action under the Act

Front 13

Tulk v Moxhay 1848 (restrictive covenants relating to land)

Back 13

Tulk owned certain land in London that he sold with an express undertaking that it wld never b used to build property on. Property then resold many times - finally to Moxhay. Intended to build on it-Tulk sued-success. Court: it wld b against conscience for Moxhay to buy, knowing of the restriction/ therefore granted the injunction and enforced the original agreement even though Moxhay had never bn a party of it.

Front 14

Lord Haldane (HoL) in Dunlop

Back 14

"only a person who is a party to a contract can sue on it"

Front 15

The doctrine of privity

Back 15

any person who is not a party to the contract can neither sue on it nor can they be sued under it

Front 16

Lord Denning quoting Lush LJ in Lloyd's v Harper 1880

Back 16

I consider it to b an established rule that where a contract is made with A for the benefit of B, A can sue on the contract for the benefit of B and recover all that B cld hv recovered if the contract hd bn made with B himself"