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Mistake & Privity - Coggle Diagram

- - - - a) principal should be named by the agent (it should be clear they are contracting on their behalf)
      - b) agent's acts must be within the principal's authority
      - c) consideration must move from the principal
    - - If A and B are contracting, B can assign their rights to C. C can then receive B's benefits under contract. However, you cannot assign obligations under the contract so B will still have to perform. A can sue B and C can sue A.
      - Limitations can be enforced, like having a 'non-assignment clause'
    - - Shanklin Pier v Detel Products- A contracted with B to paint a pier. C guaranteed to A their paint product would last 7 years. When it didn't A could sue C as a collateral contract was formed as A told B to use C's paint and B provided a guarantee
    - - Donoghue v Stevenson- does not affect action that can be taken in tort
  - - - S1(2) where contract purports to confer a benefit on a third party it creates a presumption the third party can sue which can be rebutted by the contract itself
    - - Don't need tird party consent where S2(4)(a) their whereabouts cannot be easily ascertained, S2(4)(b) they are mentally incapable of giving consent or S2(5) their reliance on the term cannot be reasonable ascertained