OCR A2 Law - The Law of Contract - Privity (2)

  • Created by: Majid
  • Created on: 26-04-13 20:26

Privity (2)

1. Equity: In equitable cases, they're used to create fairness and achieve justice. Case: "Beswick v Beswick". In this case there was an agreement made between an uncle and a nephew, which stated he had to pay £650 a week to his uncle and if he died he'd have to pay £5 a week to his aunt, HELD: Aunt was successful in suing her nephew for breach of contract and nephew had to pay £5 to his aunt.

AO2: This shows how Equity tries to be fair for the parties and what's actually intended in the contract. Equity is discretionary and ... can't be applied. Equity is only used if the rules are followed i.e. using it as a "shield and not a sword" and to use equity parties must "come with clean hands".

2. "The So-Called Holiday Cases": Lord Denning disliked the privity rule because it allows people to break their promises ... exception created. Case: "Jackson v Horizon Holidays". In this case claimant booked a holiday for himself, his wife and children on the assurance the hotel would meet his expected requirements. As it didn't claimants sued for breach of contract. HELD: Jackson was successful in policing his claim for damages for his families disappointment. AO2: HofL disapproved this decision but hasn't yet been overruled. This means a party to a contract can claim damages on behalf of others.

Case: "Woodar v Wimpey". In this case Lords felt Jackson was in a "special category" and a person can't normally sue on behalf of 3rd parties but can sue if it's proved that contract was for "relaxation" and "peace of mind".

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