Essay

Privity of Contract Doctrine

The privity of take aim doctrine dictates that exactly persons who are parties to a contract are entitled to take action to use it. A person who stands to gain a benefit from the contract (a third party beneficiary) is non entitled to take each enforcement action if he or she is denied the promised benefit.

Example:

A promises B, for term moving from B, to consecrate C $ 100.

Here A and B are parties to the contract privy to the contract and can fulfill each other if there is a breach by the other. C is not a party to the contract and cannot action A is A fails to pay C the sum of $ 100.

A classic authority for the doctrine is Dunlop Pneumatic Tyre Co Ltd v Selfridge & Co [1915] AC 847, where at 853, Viscount Haldane said:

My Lords, in the law of England certain principles are fundamental. One is that only a person who was party to a contract can march on it. Our law knows nothing of a jus quaesitum tertio [third party well(p) of action] arising by way of contract.

See also Coulls v Bagots Executor & Trustee Co Ltd (1967) 119 CLR 460, at 478, per Barwick CJ.

2.



Privity and its Relationship to the Doctrine of Consideration

When aspect at the doctrine of servant we observed the die hard that consideration must move from a promisee, or, in other words, that only a person who has provided consideration can enforce a promise. In the above example one could have argued that C could not sue on the basis that C had not provided any consideration for As promise to pay C the sum of $ 100.

This raises the question of whether there is a singularity betwixt the privity and consideration rules. This question has generated considerable discussion in academic circles and there is a division of opinion between those who say the rules are in fact one rule differently expressed and those who argue that the two rules are distinct.

In the cases, the relatively scant references to the question tend to support the two separate...If you want to get a full essay, order it on our website: Ordercustompaper.com



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