Privity. The rule of privity has developed significantly in the law of contract, over the twentieth century, due to fundamental chances in statute and the development of case law.

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Privity  Essay Question

        The rule of privity has developed significantly in the law of contract, over the twentieth century, due to fundamental chances in statute and the development of case law.

        Under the rule of privity, only a party to the contract can have obligation/burden under it. Further only a party to a contract can benefit from it, even if both parties agree in the contract that there will be a benefit for a third party. According to Trielel, ‘a contract cannot confer rights, and secondly improve liability on anyone that isn’t a party to it.’

        The case of Tweddle v Atkinson highlights these sentiments clearly.  Fundamentally it was considered, only the person who has provided consideration had the right to enforce a promise, despite the fact it was expressly stated William Tweddle had “full power to sue for aforesaid sums, specified”.

        Coupton J stated, “The consideration must move from the party untitled to sue upon the contract.” It was deemed even by getting married T had not provided sufficient consideration and could not sue. Further, quite relevantly argued T was not a ‘party to the contract’ and perhaps this was because he did not provide sufficient consideration.

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        A further establishment of the rule of privity was given by the Judgement of Viscount Haldane in the case of Dunlop v Selfridge. In the decision Dunlop’s action failed because they had provided no consideration to Selfridge. Crucially, however, Viscount Haldane stated it is a fundamental principle that ‘only a person who is a party to a contract may sue upon it’. Dunlop were not the party between Selfridge and Dew, in which Selfridge undertook not to sell below list price and could not enforce it for that reason.

        The cases of Tweddle v Atkinson and Dunlop v Selfridge, are ...

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