contained rules for when and how a company ought to be legally recognised as having validly acted and entered into a binding contract with third parties. Broadly speaking, the rules which applied to corporate capacity were the ultra vires doctrine and the doctrine of constructive notice. In regard to the concept of corporate authority, both the ultra vires doctrine and the doctrine of constructive notice also applied however their application was curtailed by the Turquand rule. The Turquand rule therefore
on the doctrine of consideration. The doctrine of consideration is one of the most established doctrines within the common law of contract. This essay will discuss the impact of Williams v Roffey Bros & Nicholls (Contractors) Ltd [1989] EWCA Civ 5 on the doctrine of consideration. It will shed light on the rules of consideration, ways to avoid consideration, application of the rules in the specific circumstance of performance of an existing duty in cases. Evidently an alteration to the rules and practices
Doctrine of privity of contract What does Privity mean- “Privity” means mutual or successive relationship to enforce a promise or warranty. Doctrine of privity - contract cannot enforce liability or obligation nor can grant rights to any person who is not a party to the contract. Doctrine of privity has two basic ingredients Liability – parties cannot impose liability on the third party. In a contract between two parties third party cannot be made liable for liability arising out of their contract
The doctrine of privity had “few friends” by the end of the 1900’s for a number of reasons because in the cases that I have mentioned throughout this essay, some judges seem to avoid using the privity rule in cases when it would apply and only when the Act was later reformed judges had said this rule should have been used on past cases. The doctrine of privity has two distinct general rules one being that a third party cannot be subject to a burden by a contract to which he is not a party to. This
The rules of law must be prepared to justify themselves against criticism and therefore it seems appropriate to consider the rules which under the common law prescripts what are the essential requirement by which it is determined whether an agreement can be legally obliged. It appears whether an approach can be adopted by the Court is when there is a seriousness intention to enter into such obligations which is enforceable at law. Of course, if there is no incapacity or impossibility in circumstances
Some of the flaws of doctrine of privity is that it provides unfairness to the contractual system as the third party‘s obligations and enforceable rights are prevented by this doctrine. A case to support this can be seen in Tweddle v Atkinson. Following the doctrine of privity, the person who suffered loss will not be given the right to sue but the person who did not suffer any loses has the right to do so. This position can be observed in the case of Beswick v Beswick . In this case the claimant
promise.”1 Whilst the doctrine of consideration does, in some cases, cause parties to experience injustice, sometimes something that the courts fail to resolve, consideration is a crucial element to the formation of a legally binding contract. This paper will not only explain why the High Court should not abolish the requirement for consideration but will also highlight its usefulness in contract formation. Origin of the Doctrine of Consideration The origin of the doctrine of consideration can trace
Contract Law The law of contract recognises that an agreement is dependent on consent and this, therefore, implies that an agreement obtained by threats or undue persuasion will be insufficient. Many contracts in practise involve a degree of 'arm twisting' and this raises the question as to what level of pressure is acceptable to exert over another contracting party? This problem is dealt with by the common law doctrine of duress and the equitable doctrine of undue influence
3. What problem was the Contract (Rights of Third Parties) Act 1999 intended to solve, and has it succeeded? Before we can delve into the question of the Contract Right of Third Parties Act 1999 we must first discuss the ideology of Privity in contract law. This is something that has been prevalent for many years and is a highly controversial doctrine. In this essay I shall discuss the changes bought forward by the Act, define the doctrine and delve into the extent of the success of the Act