2 contract law assignments Essay Example | Topics and Well Written Essays - 3750 words

2 centre law assignments - Essay ExampleHowever, that right would perk up arisen by merit of common law principles rather than statutory law as contained in the Contracts (Rights of Third Parties) Act 1999.Owen throw away explains that for many years, the doctrine of privity of contract was a fundamental feature of English law, meaning that it was only the parties to a contract who could rely upon or enforce the terms of that contract. The consequence of this was that if a third party suffered a loss because the contracting parties failed to fulfil their obligations to each other, then the third party had no recourse chthonic the contract.2 This is the background against which Sarah Jones Developments claim for damages against Archibald must be examined.There were and argon exceptions to the privity of contract rule. One exception is to be found in circumstances where a collateral contract exists. For example when there is a contract between two parties one of the parties theret o may have a collateral contract with a third party in respect of the same matters contained in the primary contract. Shanklin Pier v Detal Products 1951 854 provides a good example. In this case the plaintiff hired a contractor for the purpose of caying a pier. The painting contractor was instructed to purchase the paint from the defendants. The defendants informed the plaintiffs that the paint would last for seven years when in fact it only lasted for three months. As a precede the plaintiff took the defendants to court despite the absence of a contract between them and defendants. 3The court govern that the plaintiffs could sue the defendants for damages on the basis of a collateral contract. The plaintiff had provided consideration in exchange for the defendants assurance of the quality of the paint by indorsing a contract with the painting contractor which specifically compulsory that they purchase the defendants paint.4The general tone of judicial findings was that there m ust be an intention to form a