Dunlop v Selfridge
privity definition case
White v Bluett
Consideration need be sufficient but not adequate - only need be real and of some actual value
Chappell v Nestle
If there is some value, consideration will be adequate.
Thomas v Thomas
What is sufficient, is for the party to decide.
Re McArdle
Past consideration is not enough - cannot come after the act
Lampleigh v Braithwaite
However an exception to past consideration is if the importance of the task suggests implied payment.
Tweddle v Atkinson
Consideration must move from the promisee.
Stilk v Myrick
Existing duties do not count as consideration, unless it is added to in some aspect
Hartley v Ponsonby
Existing duties exception: Providing something extra (a benefit) is good consideration.
Williams v Roffey
Existing duties exception: Where the party agreeing to pay more for an existing duty gains an extra benefit.
Pinnel's Case
Basic rule = a promise to accept part payment for an existing debt in place of the whole debt cannot be enforced because there is no consideration of the promise.
Exceptions to Pinnel's Case:
1) Promise to pay a smaller sum ahead of time when the debt is due. 2)The creditor agrees to add something else to the payment. 3) Promissory estoppel - the offeror makes a promise that the offeree relies on.
Define privity
Means that a contract cannot confer (give) rights or impose (force) obligations on someone who is not party to the contract.
Dunlop v Selfridge b
Basic rule - promises are usually only enforceable by and against parties to contract
Jackson v Horizon Holidays
Exception of third parties: But this can be seen as unjust so it has limited use.
Shanklin Pier v Detel
Exceptions to privity: collateral contracts - Court avoids privity by identifying a second - collateral contract.
Contract (Rights of Third Parties) Act 1999
3rd parties can enforce rights that they are given under the contract if: Contract expressly states so, Contract appears to offer benefit to 3rd party (Nisshin Shipping v Cleaves)