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Privity of contract: Difference between revisions
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For example, let’s say I arrange to hire an apartment overlooking Fleet Street so that my son can watch the Lord Mayor’s parade. He likes that kind of thing. The {{t|contract}} is specific: I pay the lease for the day, and the landlord grants a specific licence to my son — not me — to occupy the house. On the appointed day, in breach of contract, the landlord refuses my son entry to the property. | For example, let’s say I arrange to hire an apartment overlooking Fleet Street so that my son can watch the Lord Mayor’s parade. He likes that kind of thing. The {{t|contract}} is specific: I pay the lease for the day, and the landlord grants a specific licence to my son — not me — to occupy the house. On the appointed day, in breach of contract, the landlord refuses my son entry to the property. | ||
My son was not party to the contract and provided no consideration — therefore has no [[privity of contract]]. My son cannot sue under the contract. On the other hand, I do have [[privity]], and I can sue for [[contractual damages]] — but only for ''my own'' [[loss]]. I didn’t suffer any loss: I wasn’t entitled to enter the property. Nor can my son take action against me — Lord Mayor’s parade was his birthday present<ref>Look, we’re an unusual family okay?</ref> | My son was not party to the contract and provided no consideration — therefore has no [[privity of contract]]. My son cannot sue under the contract. On the other hand, I do have [[privity]], and I can sue for [[contractual damages]] — but only for ''my own'' [[loss]]. I didn’t suffer any loss: I wasn’t entitled to enter the property. Nor can my son take action against me — Lord Mayor’s parade was his birthday present.<ref>Look, we’re an unusual family okay?</ref> So I have no damages to sue for, and the losses accruing to a third party (in this case, my son) — even one on whom you wanted the benefit to fall — do not count. | ||
To be sure, there are always [[equitable remedy|equitable remedies]]: [[specific performance]] of the {{t|contract}} — devised by the [[courts of chancery]] precisely to cover a situation where [[damages]] would be inadequate sanction for [[breach of contract]]. But still, an aggrieved third party beneficiary of a contractual right would still have to rely on a contractual counterparty taking this action on its behalf (and being organised enough to obtain an injunction before the parade!) | To be sure, there are always [[equitable remedy|equitable remedies]]: [[specific performance]] of the {{t|contract}} — devised by the [[courts of chancery]] precisely to cover a situation where [[damages]] would be inadequate sanction for [[breach of contract]]. But still, an aggrieved third party beneficiary of a contractual right would still have to rely on a contractual counterparty taking this action on its behalf (and being organised enough to obtain an injunction before the parade!) | ||
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::—BBC news}} | ::—BBC news}} | ||
We make no remarks, and cast no aspersions, but note only that this release, if enforceable, would be binding against Roberts by Epstein and arguably Epstein’s estate, but not, directly, by Andrew, as he has no contractual “privity” | We make no remarks, and cast no aspersions, but note only that this release, if enforceable, would be binding against Roberts by Epstein and arguably Epstein’s estate, but not, directly, by Andrew, as he has no contractual “privity”, as he was not himself party to the settlement, provided no consideration for it, and there is no equivalent in the US to the [[CRTPA]]. | ||
Andrew may not be able to strike out the tort claim himself — Epstein’s estate may do so on his behalf, but would he really want to go there? — but it may be interesting evidence when assessing the quantum of Roberts’ damages claim: (again, making no statement about the merits or morality of the situation) it indicates Roberts accepted, and therefore agrees, that $500,000 fully compensated her for her grievance and, therefore, she has not suffered a loss at any other person’s hands. | |||
{{sa}} | {{sa}} | ||
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*[[Contracts (Rights of Third Parties) Act 1999]] | *[[Contracts (Rights of Third Parties) Act 1999]] | ||
*[[Concurrent liability]] | *[[Concurrent liability]] | ||
{{ref}} | |||