第三方当事人的权利
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A very special and powerful relationship - the courts therefore have a hபைடு நூலகம்gh number of tests that have to be satisfied in order to find a trust exists
The third party will be able to rely upon exemption clauses in the original contract
6
Variations on Privity - Trusts
Three-party relationship: the owner of property (the settlor) gives it under contract to a person (the trustee), for the benefit of a third party (the beneficiary)
3
Variations on Privity
Novation Parties to contract agree to terminate existing deal and create a new one in its place Usually the new contract differs on only one or two important points; otherwise it is usually identical to the original contract Substitute subject matter - no effect on privity as parties do not change Substitute party - one of the parties is replaced by another, who goes from being a third party stranger to the original contract to a party to the new contract - the former party becomes the stranger
Chapter 2 Contract
Privity and Assignment
1
Privity
Every contract has parties - the original offeror and the accepting offeree
Performance of contract usually benefits just the parties
Not always possible, but happens frequently
5
Other side rarely cares about vicarious performance where
The contract is performed; or They can pursue the responsible party for failure
Compare with tort - No privity concept in tort Exceptions
insurance - beneficiary can sue undisclosed principals (in agency) land contracts exemption clauses
Contracts cannot be vicariously performed if there is a personal element to the performance required
Tort separate from privity
Both the party to the contract and the performing third party will owe tort duties to the other party,
4
Variations on Privity
Vicarious Performance
A party has its performance (the burden of the contract) completed in whole or in part by a third party stranger to contract
That party cannot escape liability to perform remains responsible for all elements of performance as if they did it themselves
If the stranger is to be substituted into contract, that will require consent of the other party, and then you essentially have a novation
This means third parties cannot enforce the contract, even if it benefits them
2
This rule cuts both ways - gives the parties to the contract certainty and privacy, but can also result in unfairness if performance was for the third party’s benefit
General rule of privity: only the parties to the contract can sue to enforce it
However, it is possible for another party, a third party or “stranger” to the contract, to benefit from performance, either directly or indirectly
The third party will be able to rely upon exemption clauses in the original contract
6
Variations on Privity - Trusts
Three-party relationship: the owner of property (the settlor) gives it under contract to a person (the trustee), for the benefit of a third party (the beneficiary)
3
Variations on Privity
Novation Parties to contract agree to terminate existing deal and create a new one in its place Usually the new contract differs on only one or two important points; otherwise it is usually identical to the original contract Substitute subject matter - no effect on privity as parties do not change Substitute party - one of the parties is replaced by another, who goes from being a third party stranger to the original contract to a party to the new contract - the former party becomes the stranger
Chapter 2 Contract
Privity and Assignment
1
Privity
Every contract has parties - the original offeror and the accepting offeree
Performance of contract usually benefits just the parties
Not always possible, but happens frequently
5
Other side rarely cares about vicarious performance where
The contract is performed; or They can pursue the responsible party for failure
Compare with tort - No privity concept in tort Exceptions
insurance - beneficiary can sue undisclosed principals (in agency) land contracts exemption clauses
Contracts cannot be vicariously performed if there is a personal element to the performance required
Tort separate from privity
Both the party to the contract and the performing third party will owe tort duties to the other party,
4
Variations on Privity
Vicarious Performance
A party has its performance (the burden of the contract) completed in whole or in part by a third party stranger to contract
That party cannot escape liability to perform remains responsible for all elements of performance as if they did it themselves
If the stranger is to be substituted into contract, that will require consent of the other party, and then you essentially have a novation
This means third parties cannot enforce the contract, even if it benefits them
2
This rule cuts both ways - gives the parties to the contract certainty and privacy, but can also result in unfairness if performance was for the third party’s benefit
General rule of privity: only the parties to the contract can sue to enforce it
However, it is possible for another party, a third party or “stranger” to the contract, to benefit from performance, either directly or indirectly