Formation-Privity of contract
A contract can only be enforced by and against the parties to the contract - Tweddle v Atkinson
Common law exceptions
Benefits of the Doctrine of Privity?
Privity - the relationship between the parties of a contract.
Doctrine - law established through the repeated application of legal precedents
Agency
Collateral Contracts
Restrictive Covenants
Holiday cases
Donoghue v Stevenson
You cannot be sued under a contract you did not agree to.
allows a person to authorise another to make contracts on their behalf
Courts may be able to avoid the strict rule of privity by finding a second contract alongside the main agreement.
Clause that restricts a person doing something
Jackson v Horizon holidays
Shanklin pier v detel products
Tulk v Moxhay
Legislative reform
2 main aspects to the rule of privity
1.That the 3rd party cannot be made the subject of a burden imposed by a contract
2.A 3rd party cannot enforce a benefit to be granted by the contract
Beswick v Beswick