Unemployment

Privity essay Privity of Contract is the relation that exists between contracting parties . Privity of contract applies mainly to HYPERLINK "http /www .wordiq .com /definition /Contract_of_sale " \o "Contract of sale " contracts of sale of goods or services and is restricted to the parties to a contract . Thus , a third party is precluded from initiating legal action against the parties to the contract for entitlement in excess of its benefits as provided in the contract . Moreover , a third party cannot claim or sue for damages resulting from a contract to which it s not a party . This constitutes a hindrance , where the contract was made to the benefit of the third party . Collateral warranties support the viability of this rule The doctrine of privity emerged together with the doctrine of HYPERLINK "http /www .answers .com /main /ntquery ?method 4 dsid 2222 dekey Considerat ion curtab 2222_1 " \t "_top " consideration , which states that consideration must move from the promisee . That is if nothing is given for the promise of something to be given in return , that promise is not legally binding unless promised as a HYPERLINK "http /www .answers .com /main /ntquery ?method 4 dsid 2222 dekey Deed curta b 2222_1 " \t "_top " deed Hence , in Price v Easton , a contract was made for work to be done in exchange for payment to a third party . This third party 's legal action to obtain payment was dismissed as it was held to be not privy to the contract In Tweddle v Atkinson , the plaintiff was unable to sue the executor of his father-in-law , who had promised to the plaintiff 's father to make payment to the plaintiff , because he had not provided any consideration to the contract This was further developed in HYPERLINK "http /www .answers .com /main /ntquery ?method 4 dsid 2222 dekey Dunlop Pne umatic Tyre v Selfridge and Co Ltd curtab 2222_1 " \t "_top " Dunlop Pneumatic Tyre Co . Ltd v Selfridge Co . Ltd through the judgement of Lord Haldane "An act