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11 Cards in this Set
- Front
- Back
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what is privity of a contract? |
Anyone who is not party to a contract cannot sue or be sued on the basis of the contract. (Tweddle v Atkinson - son in law was not party to the contract so could not sue, despite being expressly stated in the contract that he could.) |
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which case affirmed the privity rule? |
Dunlop v Selfridge and Co. Dunlop had no contract with third party selfridge and co so they could not sue them |
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Third parties are now covered by which statute? |
Contracts (Rights of Third Parties) Act 1999. |
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What does this Act do? |
Does not abolish privity rule. S1 states 3rd party can sue on a contract - if the contract expressly identifies them (Tweddle v Atkinson case could have been different outcome because son in law was mentioned in the contract) - if the contract intended to confer a benefit on the third party |
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Contracts made by minors (under age of 18) are either: |
Valid Voidable Unenforceable |
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What are valid contracts with minors? Can you think of a statute around this and what it says? |
A ) For necessary good and services.
S3 of the Sale of Goods Act 1979: goods suitable to the condition of life of the minor and their actual requirements at the time of sale and delivery. S3: minor must pay a reasonable price for necessaries. |
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What is the second example for when a contract is valid with a minor? What case? |
B) For beneficial contracts of service - the contract must benefit the minor OVERALL. If contracts of service = not beneficial, then they are voidable (Proform Sports Management v Proactive Sports Management) |
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What is a voidable contract? |
Contracts which impose a continuing liability. Minors can avoid the legal liability of the contract before or within reasonable time of turning 18. |
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What is the effect of having a voidable contract? |
It releases the minor from future liabilities, however they are still bound by liabilities incurred. |
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Minors are not bound by contracts for unnecessary goods and services, or loans - what does this make the contract? |
Unenforceable |
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Effects of the statute, Minors' Contracts Act 1987 improves remedies available to those who contract with minors. What does S3 state? |
S3 Minors Contracts Act 1987: if a contract with a minor is unenforceable or repudiated, the court may require the minor to return the property. |
