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Contract | Formation

Consideration: Privity

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Consideration: Privity

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  • 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
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