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1 of 6
Privity
1) Laws of Succession -
                               2) Law of subrogation        3) Law of property
      administratix

•Beswick v Beswick –         •Relating to insurance     •Purpose of the law of
 widow sued to enforce        contracts                  property was to
 promise of payments by      •Guarantor has the same     consolidate enactments
 the husband but as the       rights as the principle    relating to conveyances.
 wife was not privy to the    against the debtor         No drastic changes is
 contract, however as the                                intended so that the
 adminstratix she was                                    presumption as seen in
 successful                                              Beswick could only be
                                                         rebutted by clear
                                                         language
                                                        •There was a devisive
                                                         rejection of the scope of
                                                         s56(1) in the ruling in
                                                         Beswick
4) Laws of Trust         5) Law of Agency            6) Law of Tort             Statutes eg

• Property held by one    • Agent may contract      • Persons does not       • Married women Acts
  person for another        on the part of the        have the right to go   • Insurance acts
  Lloyds v Harper           principal                 against contracting    • Road Traffic Acts
  where the father        • Guarantor has the         parties beyond there
  formed a contract to      same rights as the        entitled benefits.
  ensure that his son       principle against the     (Donoghue v
  will be employed by       debtor (Scrutton v        Stephenson)
  Lloyds and the court      Midland – stevedores
  agreed that where         attempted to rely on
  this contract is made     an exclusion clause
  the son should be         between the shipping
  able to recover as if     company and the
  the contract was with     Plaintiffs but could
  the son himself           not succeed.
                            However Lord Reid
                            suggested that they
                            could be brought
                            into contractual
                            relations. See below
Lack of clarity (beswick v     Tension between the literal
Beswick – widow was allowed      and purpose rule as seen in
 to sue as administratix and          Beswick where the
could calim under the law of    interpretation of the property
           property                   act was concerned




                   Language was broad in
                  terms of the property Act
                 which was used with some
                 reluctance by the House of
                            Lords
Consideration –
                  Equity – Privity is
 Privity bars a
                   not very rigid
 claim despite
                    with equity.
 consideration

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Contract 1 privity

  • 2.
  • 3. 1) Laws of Succession - 2) Law of subrogation 3) Law of property administratix •Beswick v Beswick – •Relating to insurance •Purpose of the law of widow sued to enforce contracts property was to promise of payments by •Guarantor has the same consolidate enactments the husband but as the rights as the principle relating to conveyances. wife was not privy to the against the debtor No drastic changes is contract, however as the intended so that the adminstratix she was presumption as seen in successful Beswick could only be rebutted by clear language •There was a devisive rejection of the scope of s56(1) in the ruling in Beswick
  • 4. 4) Laws of Trust 5) Law of Agency 6) Law of Tort Statutes eg • Property held by one • Agent may contract • Persons does not • Married women Acts person for another on the part of the have the right to go • Insurance acts Lloyds v Harper principal against contracting • Road Traffic Acts where the father • Guarantor has the parties beyond there formed a contract to same rights as the entitled benefits. ensure that his son principle against the (Donoghue v will be employed by debtor (Scrutton v Stephenson) Lloyds and the court Midland – stevedores agreed that where attempted to rely on this contract is made an exclusion clause the son should be between the shipping able to recover as if company and the the contract was with Plaintiffs but could the son himself not succeed. However Lord Reid suggested that they could be brought into contractual relations. See below
  • 5. Lack of clarity (beswick v Tension between the literal Beswick – widow was allowed and purpose rule as seen in to sue as administratix and Beswick where the could calim under the law of interpretation of the property property act was concerned Language was broad in terms of the property Act which was used with some reluctance by the House of Lords
  • 6. Consideration – Equity – Privity is Privity bars a not very rigid claim despite with equity. consideration

Editor's Notes

  1. Criteria to come into contractual relations: 1) Bill of lading indicated that the stevedores were to be protected by the clause; 2) The carrier is contracting as an agent of the stevedores; 3) carrier must have authority to actas agents for the stevedores; 4) consideration must move from the stevedores