Contractual Obligations

Task APrivity of commence is the relation that exists between hacking parties . Privity of weigh applies mainly to HYPERLINK http /www .wordiq .com /definition / make_of_sale o Contract of sale hales of sale of goods or services and is restricted to the parties to a turn off . Thus , a trio fellowship is precluded from initiating level-headed action against the parties to the castrate for entitlement in excess of its social welfares as provided in the contract . Moreover , a third political fellowship can non yell or carry out for damages resulting from a contract to which it is not a society . This distinguishs a hindrance , where the contract was do to the benefit of the third society . Collateral warranties support the viability of this controlThe doctrine of privity emerged together with the doctrine of HYPERLINK http /www .answers .com /main /ntquery ? regularity 4 dsid 2222 dekey Considerat ion curtab 2222_1 t _top musing , which states that reflection must come across from the promi attain . That is if nothing is given for the promise of something to be given in return , that promise is not leg anyy bind unless promised as a HYPERLINK http /www .answers .com /main /ntquery ?method 4 dsid 2222 dekey Deed curta b 2222_1 t _top deed indeed , in Price v Easton , a contract was do for work to be by dint of with(p) in exchange for salary to a third party . This third party s legal action to en foreclose payment was dismissed as it was held to be not privy to the contractIn Tweddle v Atkinson , the complainant was unable to sue the executor of his father-in-law , who had promised to the plaintiff s father to puddle payment to the plaintiff , because he had not provided any consideration to the contractThis was further developed in HYPERLINK http /www .answers .com /main /ntquery ?method 4 dsid 2222 dekey Dunlop Pne umatic Tyre v Selfridge and Co Ltd curtab 2222_1 t _top Dunlop pneumatic Tyre Co . Ltd v Selfridge Co . Ltd through the judgement of Lord Haldane An act or forbearance of virtuoso party , or the promise thereof , is the harm for which the promise of the other(a) is bought , and the promise thus given for value is imposeableStrict adhesiveness to the privity doctrine proves to be artificial and contrary to the parties intention principal to injustice and inconvenience . Some epochs , the doctrine does not befool , either because of supervening principles of law or because of specific statutory nutrition , which allow a third party to enforce a right conferred on it by the contracting partiesHowever , in Beswick v Beswick , a nephew bought his uncle s coal business on the condition that he would support his aunt on his uncle s death Since , the nephew refused to support his leave behind aunt , she was permitted to sue as executor of her husband s estate and stupefy compensationIn Vandepitte v Accident insurance co , it was held that a party to a contract can act as a deponeee for a third party in venerate of a right under the contract and thus bring such(prenominal) rights on to a third party . later on , the trustee can commence steps to enforce murder as in the deterrent example of other equitable rightsUnder parklandality fairness , a promisee can implement the promise . As such , a third party who is not a promisee is not privy to the contract . In Dunlop Tyre Co v Selfridge , the plaintiffs sold tyres to Dew Co , on the condition that Dew would fix that the retailers would not apportion the tyres at a lesser bell than what the plaintiff s would . However , the suspects sold them at a debase cost than the list price of the plaintiffs . The plaintiffs then sought an requirement and damages . The apostrophize denied such action because the plaintiffs were not a third party to it and only(prenominal) a someone who is a party to a contract can sue on itA collateral contract , with the same subject matter , whitethorn exist between one of the parties to a contract and a third party . The doctrine of Privity can result in injustice and inconvenience if applied strictly Therefore , elisions fork out been developed to avoid the complications and problems resulting from the application of the doctrine of PrivityIn Shanklin Pier v . Detel Products , the plaintiffs employed contractors to paint a pier and asked them to buy paint do by the defendants . The defendants had stated that the paint would last for heptad years scarcely it lasted for only three months . The court held that the plaintiffs could sue the defendants on a collateral contractAnother exception to the doctrine of Privity is the innovation of agency An agent may enter into contract with a third party on behalf of the principal and thereby general anatomy a dorsum contract between the principal and the third party . Such a party can obtain the benefit of an censure clause by proving that the party magisterial the clause was acting as the agent of the third party , thereby bringing the third party into a mail contractual relationship with the plaintiffIn Scruttons Ltd v . Midland Silicones Ltd , a bill sticker of take limited the liability of a shipping accompany . The defendant stevedores had contracted with the shipping company to unload the plaintiff s goods on the basis that they were to be covered by the exclusion clause in the bill of lading . The plaintiffs were ignorant of the contract between the shipping company and the stevedores . Owing to the stevedores negligence , the freight rate was damaged and , when sued , they pleaded the limitation clause in the bill of lading . The House of Lords held that the stevedores could not rely on that clause , as there was no Privity of contract between the plaintiffs and defendantsA general exception to the doctrine of Privity is Equity utilizing the concept of trust . A trust is an equitable obligation to hold primty on behalf of other . This device was approved of by the House of Lords in Les Affreteurs Reunis v . Leopold Walford , where a broker negotiated a charter party by which the ship owner promised the charterer to pay the broker a tutelage . It was held that the charterer was a trustee of this promise for the broker who could enforce it against the snoop owner .Certain exceptions to the doctrine of Privity have been created by statute , including price management agreements , and some insurance contracts enforceable in choose of third parties . For example , as per the provisions of the Road vocation symbolize , an injured party may recover compensation from the insurance company after having obtained judgment against the insured personThe privity rule has much in common with the concept that consideration has to forefront from the promisee . This rule concisely states that a contract can be enforced only by the parties to it and that a third party can be bestowed with neither a burden nor an enforceable benefit due to a contract between both partiesSection 1 of the Contracts (Rights of Third Parties ) Act 1999 , confers on third parties several(prenominal) rights , some of these argon the right to benefit from exclusion or limitation clauses in the contract and to enforce positive rights . These benefits are impressive in respect of contracts executed after the tenth of May , 2000 . This permits third parties to enforce a contractual enclosure if such a provision is expressly incorporated in the contract or if the terms confer a benefit on the third partyA stranger to a contract cannot benefit from its terms , as he has not provided any consideration . This is because a promisee that has to provide consideration should have a punter position than a third party that has not provided considerationThe law of nature equip opined that though the privity doctrine specifies as to who can enforce a contract , the doctrine of consideration decides which of the promises may be enforced . The fact that there has been consideration connotes that the third party can acquire rights under the contract . As such , the law of privity of contract is not justified in stating that a third party is ineligible to acquire any rights of the contract , merely because consideration does not move from him . and then common law and legislation have accorded importance to third party rights while ousting the doctrine of privity of contractPart BThe propose up has to be genuine in to constitute a contract . Such betrothal should be in the manner prescribed or debated by the supplyer and it can be an expression by linguistic process or conduct assenting to the terms of the passing . word meaning must correlate to the stretch out and any attempt to include new terms will convert it into a respond put forward . When the communication is instantaneous like in person , fax , phone or e-mail the communication of offer and invalidation of offer is effective from the moment of receipt by the offereeAcceptance or rejection of the offer is effective when standard by the offerer . In non-instantaneous communication , like by post or mail the rules change in respect of toleration , which becomes effective only when sent or affix by the offeree . gibe it was held in R v . Clarke that acceptance must be make with knowledge of the offer . In Household raise comportment Accident redress Co . v . countenance , the postal acceptance rule was establishedThis rule states that if acceptance is to be indicated by post then it is deemed complete as currently as the letter of acceptance is posted , even in the event of its delay , destruction or loss . This was the conclusiveness of the court in Adams v Lindsell and Household Fire Insurance Co . v Grant .A counter offer invalidates an offer unless the original offer is renewed , however if there exists a battle of the forms situation then the courts will examine all the successive statements of the parties and establish a contract . Livingstone v . Evans , butler Machine Tool v . Ex-Cell-O Corp , Tywood Industries v . St . Anne-Nackawic cornmeal mush brIt is essential for revocation of an offer to be communicated to the offeree this was the court s opinion in Byrne v . Van TienhovenFurther , in Birkibon Ltd . v . Stahag Stahl und Stahlwarenhandelsgesellschaft mbH it was opined by the court that the postal acceptance rule is irrelevant to telex pass alongs , as they constitute an instantaneous form of communicationIn Holwell Securities v Hughes it was held that the offer could specify that acceptance must reach the offeror . If this be the situation then the actual communication is call for . In Tinn v Hoffman and Yates Building Co . v Pulleyn Ltd it was opined by the court that if a method had been specified , without any printing press that this should be the only method then any other equally advantageous method would likewise be acceptable scribble had offered to sell his laptop computer by placing a message on the notice board . He had stated the price as ? 450 /- or any amount nearest to this amount . This constitutes an invitation to act , which does not constitute an offer . In Harvey v . Facey , the annunciation by an owner of a property that he big businessman sell the property at a certain price was considered to be an invitation to treatIn the oft-quoted case of Carlill v . Carbolic mickle Ball Co , the court held that the mathematical process of the condition specified in the offer of a unilateral contract constitutes acceptance . Moreover , in Errington v Errington Woods a father had bought a mark in his name and had promised to give it to his son if he would gain the mortgage payments This promise was a unilateral contract and its performance had commenced as the son had started to pay the mortgage amounts . Thus , revocation was not possibleIn Hyde v . Wrench the defendant made an offer on the 6th of June in respect of the sale of an estate to the plaintiff for ? 1 , 000 /- . On the 8th of June , the plaintiff made an offer to purchase this estate for 950 /- . This offer was refused by the defendant on the 27th of June . On the 29th of June , the defendant wrote a letter accepting the original offer . In this case , the court held that there was no contract in mankind and that the counter offer of ? 950 /- cancelled the original offer . Hence , the original offer could not be revived by fresh acceptance on the 29th of June . It was held that a counter offer invalidates the original offerOn Tuesday , Roland sent an email to popsicle that he would pay ? 400 /- by go over . This represents an offer made in response to lettuce s invitation to treat . On Tuesday , kail responded to Roland s email wherein he stated that he would consider Roland s offer . This does not constitute acceptance of Roland s offer but only serves to keep the contract intact , but at this order of time , no binding contract had been made . On the very same day , Sian sent a likeness message to Dough , that she had deposited a cheque for ? 450 /- with the accounts department , from where Dough could collect it , as payment for the laptop computer .

Hence , Sian had not only judge the offer but had also completed the transaction Therefore , it is a binding contract and as such , it cannot be revoked by DoughDough , while do his offer , had specified that the mode of acceptance had to be either by facsimile or over the phone . Since , Sian had indicated her acceptance by facsimile the transaction had become a binding contract between Dough and her . Dough did not see this message due to lack of in the facsimile railway car . In Yates Building Co v R .J . Pulleyn and Sons (York ) Ltd it was held that if an offer comprises of a specific acceptance method that is to be discovered , then such a method has to be adopt in to make the contract conclusive Since , Dough had made an offer it is reasonable to expect him to take all such measures as will allow him to receive the reply to his offerIn Entores Ltd v . Miles Far East quite a little , it was held that once the message has been received , it is to be construed to have been delivered because it is the responsibility of the offeror to ensure the proper receipt of messages within his workplace . Hence , the giving of notice by the offeree constitutes the binding acceptance . The time of the contract is the time of giving this notice . The contract becomes binding on communication acceptance . Sian had transmitted her acceptance of the Dough s offer by means of a facsimile . Moreover , she had issued a cheque to Dough for the amount specified by him . Therefore , these both acts constitute a binding contract between Sian and Dough on Tuesday itselfOn Wednesday , Dough sent a facsimile message to Roland accepting his offer and at the same time requesting for light regarding the mode of payment . Moreover , he also posted this same message to Roland on Wednesday . However , this does not constitute an acceptance of an offer because clarification had been sought . Hence , it does not constitute a valid acceptanceThe postal rule though applicable to cable and telegram is inapplicable to telephone , telex and fax . Moreover , it is does not apply in instances where the letter of acceptance was not posted properly , this was the opinion of the court in Re capital of the United Kingdom and Northern BankThe question arises as to whether an offeree is permitted to withdraw his acceptance , after it has been posted , by a later communication which reaches the offeror before the acceptance . In Dunmore v . Alexander this seems to be permitted but the decision is ill-defined . The fact remains that if the postal rule is applied on the button , then such withdrawal is not permitted . The decisions in Wenkheim v Arndt and South Africa in A-Z Bazaars v Ministry of Agriculture clearly indicate this positionOn Wednesday afternoon , Dough saw Sian s message and left a message on Roland s answering machine that ignore my antecedent fax and / or postcard . Sorry - have accepted another offer However , by Tuesday itself , a binding contract had been made with Sian because she had not only communicated her acceptance on Tuesday by facsimile , which is an instantaneous messaging system , but had also issued a cheque as consideration for the contract . This shows that a binding contract had been formed between Sian and Dough , therefore , no further contract can be made by Dough with Roland on Wednesday for the laptop computerReference ListAdams v Lindsell (1818 ) 1 B Ald 681Beswick v Beswick (1966 ) Eng .CA (1968 ) AC 58Birkibon Ltd . v . Stahag Stahl und Stahlwarenhandelsgesellschaft mbH (1982 ) 1 All ER 293Butler Machine Tool v . Ex-Cell-O Corporation (1979 ) 1 WLR 401Byrne v . Van Tienhoven (1880 ) 5 CPD 344Carlill v . Carbolic Smoke Ball Co (1893 ) 1 QB 256Cartwright , Peter . 2001 . Consumer Protection and the abominable honor : impartiality Theory , and Policy in the UK . Cambridge University sign . ISBN ..14Davies , Iwan . 2005 . Issues in International Commercial Law . Ashgate issue Ltd . ISBN .. 133 - 134Dunlop Pneumatic Tyre Co . Ltd v Selfridge Co . Ltd (1915 ) AC 847Dunmore v Alexander (1830 ) 9 ShErrington v Errington Woods (1952 ) 1 K .B . 290Entores Ltd v . Miles Far East Corporation (1955 . 2 QB . 327Harvey v . Facey (1893 ) AC 552Holwell Securities v Hughes (1974 ) 1 W .L .R . 155Household Fire Carriage Accident Insurance Co . v . Grant (1879 ) LR Ex D 216Hyde v . Wrench (1840 ) 49 ER 132Law Commission of England and Wales , Consultation on Privity of contract : Contracts for the Benefits of Third Parties (1991 , WP No 121Les Affreteurs Reunis v . Leopold Walford (1919 ) AC 801Livingstone v . Evans (1925 ) WL 25377Price v Easton (1833 ) 4 B Ad 433Re London and Northern Bank (1900 ) 1 Ch 220R v Clarke (1927 ) 40 CLR 227Scruttons Ltd v . Midland Silicones Ltd (1962 ) AC 446Section 148 (4 . Road Traffic Act 1972Shanklin Pier v . Detel Products (1951 ) 2 KB 854Tinn v Hoffman (1873 ) 29 LT 271The Law Commission (England Wales . Privity of Contract : Contracts for the Benefit of Third Parties (1996 . London : HMSO .. 10-11Tweddle v Atkinson (1861 ) 1 B S 393Tywood Industries Ltd . v . St . Anne-Nackawic human body Co . Ltd (1979 100 D .L .R (3d ) 374Vandepitte v Accident Insurance co (1933 ) AC 70Wenkheim v Arndt (1873 ) 1 JR 73Waddams , S .M (1999 . The Law of Contracts , 4th ed . Toronto : Canada Law Book . . 194Yates Building Co . v Pulleyn Ltd (1975 ) 119 SJ 370Cartwright , Peter . 2001 . Consumer Protection and the Criminal Law : Law Theory , and Policy in the UK . ISBN .. 14Stone , Richard . Modern Law of Contract . 2005 . Routledge Cavendish ISBN .. 127(1833 . 4 B Ad 433Ibid(1861 ) 1 B S 393Ibid(1915 ) AC 847IbidDavies , Iwan . 2005 . Issues in International Commercial Law . Ashgate publication Ltd . ISBN .. 133(1966 , Eng .CA , [1968] AC 58Ibid(1933 ) AC 70Ibid(1915 ) AC 847Ibid(1951 ) 2 KB 854Ibid(1962 ) AC 446Ibid(1919 ) AC 801IbidSection 148 (4 ) of the Road Traffic Act 1972Stone , Richard . Modern Law of Contract . 2005 . Routledge Cavendish ISBN .. 128Davies , Iwan . 2005 . Issues in International Commercial Law . Ashgate Publishing Ltd . ISBN : . 134Law Commission of England and Wales , Consultation on Privity of contract : Contracts for the Benefits of Third Parties (1991 , WP No 121 . At para 4 .3 (vLaw Commission of England and Wales , Consultation on Privity of contract : Contracts for the Benefits of Third Parties (1991 , WP No 121 . At pare 4 .4 (v(1927 . 40 CLR 227(1879 . LR Ex D 216(1818 ) 1 B Ald 681(1879 ) 4 Ex D 216(1925 . WL 25377(1979 . 1 WLR 401(1979 . 100 D .L .R (3d ) 374(1880 . 5 CPD 344(1982 . 1 All ER 293(1974 ) 1 All ER 161(1873 ) 29 LT 271(1975 ) 119 SJ 370(1893 . AC 552Ibid(1893 . 1QB 256(1952 . 1KB 290Ibid(1840 ) 49 ER 132Ibid(1975 . 119 SJ 370(1955 . 2 QB . 327(1900 . 1 Ch 220(1830 . 9 Sh(1873 . 1 JR 73 PAGE 12 ...If you motive to get a full essay, order it on our website: Orderessay

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