Agency is the relationship that exists where one person (the principal) authorizes another (the agent) to act on its behalf and the agent agrees to do so. This Chapter discusses the modes of agency creation and the different kinds of agency, and the effect of agency: (a) the relations between the principal and third parties; and (b) the relations between the agent and third parties.
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Chapter
23. Agency
Jack Beatson, Andrew Burrows, and John Cartwright
Chapter
6. Privity and third parties
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. This chapter examines the doctrine of privity in the law of contract and the position of third parties. The doctrine of privity dictates that a person who is not a party to the contract cannot be granted contractual rights by the contract or be placed under contractual obligations by it. It explores the rationale of the principle, discusses the authorities that established it, and looks at the various common law exceptions to the rule that a third party cannot acquire rights under a contract. This chapter also explores in detail the statutory exception to privity provided in the Contracts (Rights of Third Parties) Act 1999.
Chapter
10. Third parties
This chapter considers two principal questions: firstly, may a person who is not a party to a contract acquire rights under it? Secondly, can a contract impose duties on a person who is not a party to it? With some exceptions, the common law answered ‘No’ to both. A contract between A and B cannot be enforced by a third party, C, even if the contract is for the benefit of C. Nor can a contract between A and B impose burdens on C. Following the Contracts (Rights of Third Parties) Act 1999 there is now a statutory exception to the principle that C acquires no rights under a contract between A and B. Under this Act, a third party might be able to enforce a term of the contract if the contract expressly provides that they may, or if the relevant term purports to confer a benefit on them.
Chapter
15. Constructive trusts and fiduciary duty
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. The chapter looks at the nature of fiduciary duty and how someone becomes a fiduciary. The liability of fiduciaries for breach of trust is considered. Bribery and secret profits are explained, the meaning, nature, and approaches to constructive trusts are studied, and the various circumstances in which constructive trust might emerge are discussed. These include remedial and institutional constructive trusts. The liability of third parties (strangers) in constructive trusts as trustees de son tort, dishonest assisters, and those in knowing receipt are considered. The meanings of ‘knowledge’ and ‘dishonesty’ in this area of the law are explained, as is the level of liability of constructive trustees.
Chapter
2. The distinction between legal and equitable interests
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. This chapter distinguishes between legal and equitable interests in land. The intervention of equity in land law can be seen in two key areas: the development of new equitable interests in land, and the availability of equitable remedies to enforce interests in land. To be legal, the interest must be listed under s 1(2) Law of Property Act 1925 (LPA 1925) and certain formalities must be met in its creation, notably being granted by deed (s 52 LPA 1925). Where these formalities are not met, the interest may have equitable status instead, but only where equity can find a specifically enforceable valid contract to create the interest. All other interests in land can only ever be equitable (s 1(3) LPA 1925). The status of an interest in land as either legal or equitable traditionally determined the rules of enforcement of that interest against third parties: legal interests bound all third parties, whereas equitable interests would only bind third parties who were not bona fide purchasers for value of a legal estate without notice.
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VII. Character in general
This chapter examines the evidence of the character of parties, witnesses, and third parties. Evidence of character has never been a model of coherence or clarity either at common law or under statute. It is complex, both in the connotation and means of proof of the concept of character, and in the variety of contexts in which it arises. The concept embraces both disposition, commonly described as propensity, to act in a relevant way, and sometimes the means of proof of such relevant disposition, either through reputation, the expressed belief of others of the subject's disposition, or of acts of the subject from which such disposition may be inferred. It may be relevant in any form of proceedings, and at any stage of a trial.
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16. Termination of Membership
This chapter explains how a person ceases to be a member, and what the consequences of termination of membership is, both in terms of relations with third parties and in terms of relations between the departing member and the LLP. It considers the application of post-termination controls on a departing member.
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27. Bills of lading and contracts of carriage
This chapter focuses on the key concepts of bills of lading and contracts of carriage. It highlights the importance of contracts of carriage since goods sold to an international sale contract need to arrange transportation to particular destinations. Goods are often carried under a waybill contract under which the carrier undertakes to deliver the goods to a named consignee at the port of destination. The chapter considers the bill of lading as a document of title, as evidence of the contract of carriage, and as a receipt before listing alternatives to bills of lading. It also looks into tort claims against third parties and claims against the carrier.
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6. Relations with third parties
This chapter focuses on third parties. It specifically looks at the differences between disclosed and undisclosed agencies. The agency is disclosed where the agent reveals that they are acting as an agent; the agency is undisclosed where the agent does not reveal the fact of the agency at all and purports to be acting in their name and on their behalf. The chapter then discusses the agent's warranty of authority to the third party who contracts with the agent's principal. It considers the liability for misstatements as any misrepresentation may give the representee a right to rescind any contract made in reliance on it.
Chapter
6. Relations with third parties
D Fox, RJC Munday, B Soyer, AM Tettenborn, and PG Turner
This chapter examines how contracts made by the agent affect the legal relations of the principal with regard to third parties. When considering the rights and liability arising under a contract made by an agent, it is important to draw the distinction between whether the agent was acting for a disclosed or undisclosed principal, the latter being an important feature of English agency law largely unknown to civil lawyers. This chapter discusses generally the relations between principal and third party, and between agent and third party, in the context of both disclosed and undisclosed agency.
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12. Third parties
This chapter explores how lawyers can balance their obligations to promote their clients’ interests and their obligations to third parties. While there are circumstances in which duties are owed to third parties, these are limited. The law and ethical codes struggle to ensure that, even when these duties are imposed, they are not used to undermine the relationship between lawyer and client. The regulations ensure that the lawyer never acts against the best interests of the client. The chapter explores the guidance issued by the professional codes of practice. It also looks at the practice of giving an undertaking, which is an important aspect of some lawyer’s work.
Chapter
12. Third Party Rights (the Doctrine of Privity)
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.
Chapter
4. Privity and third party rights
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. This chapter discusses the doctrine of privity and third party rights. The doctrine of privity of contract provides that a person who is not a party to a contract (called a ‘third party’), cannot acquire rights under or enforce the provisions of that contract or rely on its protections even if the provisions were intended to benefit that third party. At common law there are complex, and sometimes artificial, ways to avoid this conclusion. More significant nowadays is the attempt to reform this principle by legislation in the Contracts (Rights of Third Parties) Act 1999, allowing some third party beneficiaries to enforce the provisions of contracts.
Chapter
13. Proprietary Estoppel
Estoppel is seen as having two main forms. In the law of contract, it is seen principally as having a defensive function, operating to modify the doctrine of consideration to prevent one party to a contract from fully enforcing his contractual rights against the other. This form of the doctrine, termed promissory estoppel, is seen traditionally as being defensive in nature: it is a shield and not a sword. In land law, by contrast, it has long been accepted that estoppel can operate directly to found a cause of action. When operating in this way, the doctrine is referred to as proprietary estoppel. This chapter discusses how a claim in proprietary estoppel is established, where a claimant relies upon an assurance to their detriment in unconscionable circumstances, as well as how a court decides how to satisfy the equity that arises in a successful claim—the question of remedy.
Chapter
4. Privity and third party rights
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. This chapter discusses the doctrine of privity and third party rights. The doctrine of privity of contract provides that a person who is not a party to a contract (called a ‘third party’), cannot acquire rights under or enforce the provisions of that contract or rely on its protections even if the provisions were intended to benefit that third party. At common law there are complex, and sometimes artificial, ways to avoid this conclusion. More significant nowadays is the attempt to reform this principle by legislation in the Contracts (Rights of Third Parties) Act 1999, allowing some third party beneficiaries to enforce the provisions of contracts.
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17. Co-ownership and Priorities: The Defences Question
All books in this flagship series contain carefully selected substantial extracts from key cases, legislation, and academic debate, providing able students with a stand-alone resource. This chapter deals with the priority rules applicable where co-owned land is sold or mortgaged. It concentrates on overreaching. It is theorized that s 27(1) of the Law of Property Act 1925 (LPA 1925) provides the basis of overreaching. Other theories include that the basis of overreaching lies in the doctrine of conversion and the trustees’ powers of disposition. The chapter considers the preconditions for overreaching to take place and the practical division that arises between trusts with one and two (or more) trustees. It explores the contentious question of the effect on overreaching where a transaction constitutes an intra vires or ultra vires breach of trust and the protection available to purchasers in those circumstances where a breach of trust precludes overreaching. In doing so, possible third-party liability in knowing receipt and dishonest assistance, and the Supreme Court’s analysis in Byers v Saudi National Bank is considered.
Chapter
12. The limits of hard bargaining
Duress and undue influence
This chapter examines how English law sets limits to hard bargaining through the application of the doctrines of duress and undue influence. It first considers the problem of coercion in contractual transactions and how the doctrine of duress deals with coercion through the use of threats. It then discusses three key elements of duress: the impact of the pressure on the person who was subject to it, the need to prove illegitimacy, and the pressure must induce the decision to contract. It also describes remedies for duress and proceeds with an analysis of the scope and nature of undue influence, the elements of actual undue influence, presumed undue influence, remedies for undue influence, and specific issues that arise in relation to undue influence where third parties are involved. The chapter concludes with an overview of the regulation of aggressive practices.
Chapter
16. Co-Ownership
This chapter studies the trust of land, and how this legal structure is used to manage co-ownership of land. It first describes the nature of interests under a trust of land, and the rights and obligations for trustees and beneficiaries which arise as a result of the creation of such a trust. The chapter then details the different forms of concurrent co-ownership which can exist in relation to land, looking at joint tenancies and tenancy in common as well as the process of severance. Since co-ownership cannot exist without a trust, it is useful to have understood trusts generally before examining it as a tool to manage co-ownership situations. Finally, the chapter assesses the regulation of disputes between trustees, beneficiaries, and third parties. Partly these disputes relate to questions of priority, and so it is useful to read this chapter in conjunction with the previous one concerning the general priority rules.
Chapter
8. Proprietary Estoppel
This chapter addresses proprietary estoppel, which is one of the land law doctrines which allows for the creation of rights in land without a written contract or other formal document. It arises when a person (the promisor) makes a promise to another (the promisee) in relation to their land, and then attempts to go back on that promise in circumstances where it was unfair to do so. Given the general policy of formality, with its associated benefits of certainty and clarity, one must consider the rules relating to proprietary estoppel from the perspective not only of when proprietary estoppel generates rights in land, but also why it does so. This is particularly important in relation to estoppel since it represents a general and potentially broad exception to the formality rules discussed in the fourth chapter. There are three forms of proprietary estoppel: estoppel by representation, estoppel by acquiescence, and estoppel by assurance or promise. The chapter then discusses the consequences of estoppel arising in terms of remedies and effects on third parties. It also examines the relationship between estoppel and formalities, and estoppel and constructive trusts.
Chapter
10. The fiduciary duty
The fiduciary duty is the defining duty of trusteeship and consists of several overlapping obligations intended to promote loyalty or faithfulness. As part of his fiduciary duty, the trustee should avoid conflict with the interests of the trust and not to make an unauthorized profit from the trust property, or from his position of trust. The fiduciary duty may also apply to a person who is not a trustee, in which case he is said to be a fiduciary. This chapter examines the principal obligations of trusteeship and the implications of breach of those obligations for trustees, beneficiaries, and third parties. It first discusses the strict rule of exemplary fiduciary propriety before turning to the duty of good faith. The chapter also looks at fiduciary relationships and fiduciary duties, the fiduciary duty to avoid conflicts of interest, the fiduciary duty to account for unauthorized profits, and trustee remuneration.
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