LAWS105 Lecture 4: LAWS105 week 4 privity n terms
Document Summary
Only a party to the contract can enforce the contract. The doctrine of privity states that third parties to a contract (even if beneficiaries under the contract, or obligated under the contract) cannot enforce the contract, or have the contract enforced against them. Idea is that contracts are essentially private bargains that are exclusive to the parties. While contracts can be used to confer benefits on third parties it is for the parties alone to choose whether to enforce them or not. There are at least 3 examples of where issues of privity arise: Dunlop pneumatic tyre co v selfridge [1915] ac 847. The plaintiff (dunlop) sought to establish and enforce a resale price maintenance (rpm) scheme. The plaintiff sold tyres to dew & co (a tyre dealer) which then sold to. Selfridge on condition that selfridge would not sell below the list price. Selfridge failed to comply with the condition; the plaintiff sued for breach of contract.
