This chapter highlights the doctrine of privity of contract; that means it is about the rights and obligations of third parties. The starting point is the basic common law rule of privity. At common law, third parties have no general right to enforce contracts made by others. Likewise, contracts made by others cannot impose obligations on third parties. This is a fairly straightforward principle and is based on sound reasons, but in practice privity has become a complex area. The existence of the rule resulted in a range of clever devices being developed to get around it, all of which are of commercial importance. And the rule against parties enforcing contracts made by others in particular was also severely criticized over the years for various reasons. The basis for such criticism resulted in some partial exceptions being developed in the case law, and ultimately in a statute—namely the Contracts (Rights of Third Parties) Act 1999. This complicates matters further because the Act only applies in certain circumstances and its application can be excluded by the terms of the contract. As such, there will be circumstances in which the common law exceptions and devices remain relevant, and they must therefore be studied alongside it.
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Chapter
The Concentrate Questions and Answers series offers the best preparation for tackling exam questions. Each book includes typical questions, answer plans and suggested answers, author commentary and other features. Traditionally the doctrine of privity of contract regards contract as based upon agreement and consequently only the parties to that agreement can enforce it. This chapter discusses common law limitations to the doctrine of privity; common law attempts to evade privity; and statutory developments.
Chapter
Celebrated for their conceptual clarity, titles in the Clarendon Law Series offer concise, accessible overviews of major fields of law and legal thought. This chapter examines a range of Equity's incursions into the Common Law of contract. Because of these interventions, the landscape of contract law is broader and more varied than it might otherwise have been. The chapter discusses five different Equitable strategies that give the flavour of Equity's various forms of interference. These are overriding the need to comply with formalities; avoiding privity requirements; re-examining consideration; implying terms; and Equity's ability to anticipate or secure the Common Law outcome.
Chapter
M P Furmston
This chapter discusses the doctrine of privity of contract. It covers exceptions to doctrine, the Contracts (Rights of Third Parties) Act 1999; and attempts to impose liability upon nonparties to the contract.
Chapter
The Concentrate Questions and Answers series offers the best preparation for tackling exam questions. Each book includes typical questions, answer plans and suggested answers, author commentary, and other features. This chapter explores the privity of contract. Traditionally the doctrine of privity of contract regards contract as based upon agreement and consequently only the parties to that agreement can enforce it. This chapter discusses common law limitations to the doctrine of privity; common law attempts to evade privity; and statutory developments. It covers the Contracts (Rights of Third Parties) Act 1999, including the freedom given to the contracting parties to exclude the provisions of the Act, or to set out procedures for post-contractual variation of arrangements that avoid the need to obtain the third party’s consent.
Chapter
Course-focused and comprehensive, the Textbook on Land Law provides an accessible overview of one key area on the law curriculum. This chapter considers the nature of a licence of land. It discusses how to distinguish a lease from a licence, and how to distinguish an easement or profit from a licence. It then discusses enforcement against the licensor; enforcement against successors of the licensor; and whether licences can be thought of as interests in land. The issues covered are also applied to licensees in Trant Way: Henry Mumps and Bob Bell, each living in property owned by another member of their family.
Chapter
Titles in the Complete series combine extracts from a wide range of primary materials with clear explanatory text to provide readers with a complete introductory resource. This chapter addresses issues stemming from the following question: if a tenant assigns their lease, or sublets, and/or a landlord sells their fee simple, who is now entitled to enforce the various terms of the lease, and against whom can they be enforced? The discussions cover the liability of original parties after assignment in pre-1996 leases; the Landlord and Tenant (Covenants) Act 1995; position of equitable leases; and the position of subtenants and head landlords.
Chapter
Titles in the Complete series combine extracts from a wide range of primary materials with clear explanatory text to provide readers with a complete introductory resource. This chapter addresses issues stemming from the following question: if a tenant assigns their lease, or sub-lets, and/or a landlord sells his/her fee simple, who is now entitled to enforce the various terms of the lease, and against whom can they be enforced? The discussions cover the liability of original parties after assignment in pre-1996 leases; the Landlord and Tenant (Covenants) Act 1995; position of equitable leases; and position of sub-tenants and head landlords.
Chapter
This chapter describes privity of contract, explaining the development of the doctrine and the problems associated with its application. The scope and usage of the Contracts (Rights of Third Parties) Act 1999 is discussed. The tensions inherently created by the possible freedom of the contracting parties to vary or cancel a third party’s right under an agreement are highlighted. Circumventions of, and exceptions to, the doctrine are also addressed including limitations on the doctrine which may be brought about by an assignment of contractual rights and the doctrine of agency. Finally, the issues surrounding privity and the doctrine of consideration are noted.
Chapter
This chapter examines the impact of a contract on third parties. It addresses two main questions: whether or not a third party can acquire any rights under the contract, and whether or not the contract can impose upon him obligations or liabilities. The general rule adopted by English law is that the contract creates rights and imposes obligations only between the parties to the contract: the third party thus neither acquires rights under the contract nor is he subject to liabilities. This general rule is known as the doctrine of privity of contract. The Contracts (Rights of Third Parties) Act 1999, however, provides a relatively simple mechanism by which contracting parties can confer upon a third party a right to enforce a term of their contract. The dominant philosophy that underpins the 1999 Act is one of freedom of contract and, this being the case, the success of the Act in practice will depend upon contracting parties themselves. The chapter examines the individual sections of the 1999 Act, the exceptions to the doctrine of privity that existed at common law and under various statutes prior to the enactment of the 1999 Act. The chapter concludes by considering the extent to which a third party can be subject to an obligation by a contract to which he is not a party.
Chapter
This chapter examines the impact of a contract on third parties. It addresses two main questions: whether or not a third party can acquire any rights under the contract, and whether or not the contract can impose upon him obligations or liabilities. The general rule adopted by English law is that the contract creates rights and imposes obligations only between the parties to the contract: the third party thus neither acquires rights under the contract nor is he subject to liabilities. This general rule is known as the doctrine of privity of contract. The Contracts (Rights of Third Parties) Act 1999, however, provides a relatively simple mechanism by which contracting parties can confer upon a third party a right to enforce a term of their contract. The dominant philosophy that underpins the 1999 Act is one of freedom of contract and, this being the case, the success of the Act in practice will depend upon contracting parties themselves. The chapter examines the individual sections of the 1999 Act, the exceptions to the doctrine of privity that existed at common law and under various statutes prior to the enactment of the 1999 Act. The chapter concludes by considering the extent to which a third party can be subject to an obligation by a contract to which he is not a party.
Chapter
This chapter describes privity of contract, explaining the development of the doctrine and the problems associated with its application. The scope and usage of the Contracts (Rights of Third Parties) Act 1999 is discussed. The tensions inherently created by the possible freedom of the contracting parties to vary or cancel a third party’s right under an agreement are highlighted. Circumventions of, and exceptions to, the doctrine are also addressed including limitations on the doctrine which may be brought about by an assignment of contractual rights and the doctrine of agency. Finally, the issues surrounding privity and the doctrine of consideration are noted.
Book
Mindy Chen-Wishart
Contract Law offers a new approach, utilising diagrams to complement the text. The book explains the intricacies of contract law and the questions that arise during the life of a contract. Part I of the book explains what contract law is and defines its scope. Part II of the book looks at contract formation: the finding of agreement and meeting the criteria of enforceability. Part III focuses on the position of third parties. Part IV considers the vitiating factors of misrepresentation and non-disclosure, mistake, frustration, duress, undue influence, and unconscionability. Part V analyses the terms of contracts: express, implied, collateral, and examines their interpretation and enforceability. Part VI considers the breach of a contract and the remedies of termination, damages, and specific and agreed remedies. Part VII examines good faith in current contract law.
Book
Cheshire, Fifoot & Furmston’s Law of Contract is a classic text on contract law. The first edition was published over seventy years ago. The book combines an account of the principles of the law of contract with analysis and insights, and the narrative brings understanding of complex contractual issues to a wider readership. It starts by providing a historic introduction, and goes on to look at issues such as modern contract law, agreement, consideration, and legal relations. The book details the contents of the contract and looks at unenforceable contracts, mistake, misrepresentation, duress, and undue influence. Chapters then examine contracts rendered void under statute, contracts illegal by statute or at common law, and contracts void at common law due to public policy. The text moves on to look at privity, rights and liabilities, performance and breach, and discharge under the doctrine of frustration. Finally, the book looks at remedies for breach of contract.
Book
Janet O'Sullivan
Titles in the Core Text series take the reader straight to the heart of the subject, providing focused, concise, and reliable guides for students at all levels. The Law of Contract provides a concise overview of the fundamentals of contract law and its underlying rationales. It also introduces and explores the main academic debates within the subject, encouraging readers to reflect on the law and, where it is controversial, to form their own views on whether the rules that contract law adopts are justifiable.
Book
Mindy Chen-Wishart
Contract Law offers a new approach, utilising diagrams and commentary boxes to complement the text. The book explains the intricacies of contract law by reference to the questions that arise during the life of a contract. Part I of the book introduces contract law. Part II looks at contract formation: the finding of agreement and meeting the criteria of enforceability. Part III focuses on the position of third parties who may benefit or be burdened by the contract. Part IV considers the reasons for allowing a party to escape the contract, namely the vitiating factors of misrepresentation and non-disclosure, mistake, frustration, duress, undue influence, and unconscionability. Part V looks at how to determine the contents of contracts: express, implied, and collateral terms, and examines their interpretation and enforceability. Part VI considers the breach of a contract and the availability of the remedies of termination, damages, and specific and agreed remedies. Part VII examines whether obligations of good faith should be recognised in current contract law and how that might affect the way we understand contract law.
Chapter
Jack Beatson, Andrew Burrows, and John Cartwright
This Chapter deals with the scope of a valid contract when formed, and the question: to whom does the obligation extend? This question is considered under two separate headings: (1) the acquisition of rights by a third party, and (2) the imposition of liabilities upon a third party. At common law the general rule is that no one but the parties to a contract can be entitled under it, or bound by it. This principle is known as that of privity of contract.
Book
Janet O’Sullivan
Titles in the Core Text series take the reader straight to the heart of the subject, providing focused, concise, and reliable guides for students at all levels. The Law of Contract provides a concise overview of the fundamentals of contract law and its underlying rationales. It also introduces and explores the main academic debates within the subject, encouraging readers to reflect on the law and, where it is controversial, to form their own views on whether the rules that contract law adopts are justifiable.
Book
Jill Poole, James Devenney, and Adam Shaw-Mellors
Each Concentrate revision guide is packed with essential information, key cases, revision tips, exam Q&As, and more. Concentrates show you what to expect in a law exam, what examiners are looking for, and how to achieve extra marks. Contract Law Concentrate contains a wealth of information on the field of contract law to aid with revision and understanding the elements of the contract law syllabus. It looks specifically at the components of agreement, enforceability criteria comprising intention to create legal relations, consideration, and the doctrine of promissory estoppel. It also focuses on some problems associated with reaching agreement, such as whether the terms are sufficiently certain, and mistakes which prevent agreement. The doctrine of privity determines who has the ability to enforce the contract and whether a third party can take the intended benefit of a contract. Contract Law Concentrate focuses on the terms (or promises) of the contract and breach of contract when those promises are broken. It also examines exemption clauses and unfair contract terms. Next it looks at remedies for the breach of contract. It then turns to contractual impossibility and risk where the default rules of common mistake (initial impossibility) and frustration (subsequent impossibility) will determine the parties’ positions in the absence of party allocation. Finally, it outlines contractual remedies for actionable misrepresentations and looks briefly at the common law doctrine of duress and the equitable doctrine of undue influence.
Chapter
This chapter provides an introduction to the law of contract. It discusses several preliminary pre-contractual issues and explains that though most contracts do not require formalities, a number of important ones impose certain requirements and failure to comply may render the contract unenforceable. The ability of persons to enter into contracts (that is, their capacity) is also discussed where it is noted that certain persons cannot enter into legally binding contracts. The chapter also clarifies why contracts are enforced. This chapter also discusses the rules governing privity of contract and considers the role of third parties in enforcing a contractual term via statute and common law principles.
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