The following Dispute Resolution practice note provides comprehensive and up to date legal information covering:
This Practice Note discusses the common law doctrine of privity of contract; the equitable and statutory exceptions to it; how the doctrine affects enforcing a contract against a third party and what happens when, notwithstanding the lack of privity, a contract has an indirect effect on a third party. For guidance on contracts and third parties more generally and on the Contracts (Rights of Third Parties) Act 1999 (C(RTP)A 1999), respectively, see Practice Notes:
Contracts and third party rights
Third party rights—the Contracts (Rights of Third Parties) Act 1999
'Privity of contract' is a common law doctrine, which provides that you cannot either:
enforce the benefit of, or
be liable for any obligation under
a contract to which you are not a party.
Therefore, if your client is not a party to a contract (ie they are a third party) then they cannot sue or be sued under that contract.
A promises to B that they will pay a sum of money to C—C cannot sue A for that sum if A fails to pay.
Beswick v Beswick is considered to be the modern statement of the doctrine. Here, a coal merchant transferred his business to his nephew who promised him that he would, after the uncle's death, pay an annuity to the uncle's widow. After the uncle's death, the widow became his administratrix.
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This Practice Note considers the nature and scope of arbitration agreements with a particular focus on arbitration agreements pursuant to the law of England and Wales, although it also discusses the concept from an international perspective and includes some comparative examples from other
STOP PRESS: The Corporate Insolvency and Governance Act 2020 contains provisions which, on a temporary basis (presently until 31 December 2020) impose significant limitations on the ability for a creditor to seek a winding-up order against a company. For further reading, see Practice Note: Corporate
This Precedent letter covers disclosure obligations under CPR 31. It does not apply to proceedings subject to the disclosure pilot scheme under CPR PD 51U. For guidance on the disclosure pilot scheme, see Practice Note: Business and Property Courts—the disclosure pilot scheme. For a client letter on
Disposal and devolutionThe equity of redemption arises as soon as the mortgage is made. It is an interest in the land which the mortgagor can:•transfer, lease or mortgage inter vivos, or•by will (it passes on intestacy)No cloggingIt is a fundamental principle of a mortgage that there must be no clog
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