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Privity and Third-Party Rights in Contract Law

Contract Law - Seminar 19 Privity/Frustration Tweddle v Atkinson [1861] 1 B&S 393 · Son and daughter of disputing parties were getting married . Their fathers entered into an agreement that they would pay money to the couple · Father of bride died before he paid the money and father of groom died before he could sue on the agreement . Groom brought claim against the executor of the will for payment . Held the groom wasn't part of the agreement between the fathers and he didn't provide consideration for the promise made by the father of the bride · He therefore couldn't enforce it Dunlop Pneumatic Tyre Co Ltd v Selfridge & Co Ltd [1915] AC 847 . Dunlop were tyre manufacturers who agreed with their dealer not to sell the tyres before a RRP . Dunlop also required their dealers to get the same agreement with their retailers (Selfridge) . Agreement held that if tyres were sold below the RRP, they would be required to pay £5 per tyre in damages to Dunlop - agreed between dealer and Selfridges, making Dunlop a third party · Selfridge sold tyres below the agreed price and Dunlop sued for damages · Court found Dunlop couldn't claim because; o Only a party to the contract can claim upon it o Dunlop hadn't given any consideration to Selfridge Dunlop wasn't listed as an agent within the contract and therefore couldn't be included as a valid third-party who had rights to claim on the contract Beswick v Beswick [1968] AC 58 . Uncle was in poor health and agreed with his nephew that he would transfer the trade and good will of his coal business to him on basis that the nephew employed him as a consultant for the rest of his life and paid him . Nephew agreed to pay uncles wife for the rest of her life after he died · Upon Uncle's death, nephew only paid wife once · Widow brought action as administrator of estate . Court granted the widow an order of specific performance for the payment owed by the nephew as an administrator for husbands estate . Could held the damages wouldn't be limited due to the loss that had been caused to uncles estate . But found wife couldn't claim under her personal capacity as she was a third party Nisshin Shipping Co. Ltd v Cleaves & Co. Ltd [2003] EWHC 2602 · D negotiated nine time charters on behalf of Nisshin . Contracted stated that Cleaves was to receive a commission as a broker and contained an arbitration clause which was wide enough to entitle a claim by the charterers against the owners failing to pay the promised commission . Nisshin refused to pay the commission to Cleaves, went to arbitration . Nisshin claimed Cleaves had repudiated the contract by having an interest with one of Nisshan's competitors, taking this as a termination of contract . Issue was whether the commission clauses conferred a benefit on