Consideration: Privity

[Flash Card 1 of 1]

• principle: only parties to contract can sue or be sued on promises in it / third party cannot benefit or have obligations

Tweddle v Atkinson (1861)

• P's father & father-in-law agreed to pay P / marriage settlement / P's father paid £100 / father in law not pay £200 promised
• held: P could not sue as third party & given no consideration / Wrightman J: .. it is now well established that at law no stranger to the consideration can take advantage of the contract though made for his benefit....
• P's father could not sue: suffered no loss

Contracts (Rights of Third Parties) Act 1999

• S1: statutory right for third parties / take advantage of contractual promises / where made for third party's benefit

bits of law