Deck 9: Third Parties

Question 1

The Contracts (Rights of Third Parties) Act 1999 replaces the common law on privity.

Answer 1

False

Question 2

The Contracts (Rights of Third Parties) Act 1999 has created a major exception to the rule that a contract between A and B cannot impose duties on C.

Answer 2

False

Question 3

If parties stipulate in their contract that the Contracts (Rights of Third Parties) Act 1999 does not apply, that provision has no effect.

Answer 3

False

Question 4

Which of the following options explain why the rules developed by the common law on privity remain relevant even after the enactment of the Contracts (Rights of Third Parties) Act 1999? Please select all that apply.

A) The 1999 Act does not apply to all classes of contract.
B) Contracting parties can choose to exclude the operation of the 1999 Act if they wish.
C) The 1999 Act does not affect rights or remedies otherwise available under the common law.
D) The common law takes precedence over the 1999 Act in the event of conflict.

Question 5

Why did the claimant's action in Tweddle v Atkinson fail?

A) The contract in question was a domestic agreement and thus not enforceable.
B) The claimant was not a promisee to the contract in question.
C) The claimant had not provided consideration for the promise.
D) None of the options provided is correct.

Question 6

How did the Privy Council in The Eurymedon overcome the difficult question of consideration in order to hold that the stevedores could rely on the exemption clauses in the bill of lading?

A) The bill of lading expressly provided that the stevedores could rely on the exemption clauses.
B) As agents of the carrier who was party to the bill of lading, the stevedores did not need to provide consideration to benefit from the exemption clauses.
C) A fiction of a 'collateral contract' between the shipper and stevedores was employed, under which the stevedores provided consideration.
D) None of the options provided is correct.

Question 7

What is the basis of the decision of the House of Lords in Panatown v Alfred McAlpine Construction?

A) A claim could not be brought for the third party's loss because a deed had been executed by the defendant in favour of the third party.
B) A claim could be brought for the third party's loss because a deed had been executed by the defendant in favour of the third party.
C) A claim could not be brought because it was not foreseeable at the time of contracting that loss would be caused to the defendant from a breach of contract.
D) None of these options are correct.

Question 8

Under what circumstances would a person who is not party to a contract be able to enforce a term in his own right under the Contracts (Rights of Third Parties) Act 1999? Please select all that apply.

A) The contract expressly provides that the person can enforce it.
B) That person thought that he was able to enforce it.
C) The term in question purports to confer a benefit on him.
D) That person is not expressly identified in the contract.

Question 9

When might you be liable for another's contractual obligations on the acquisition of property?

A) If the property is land, and you are aware that it is subject to a negative covenant restricting its use.
B) If the property is a chattel, and you are aware that it is subject to a negative covenant restricting its use..
C) Both options are correct.
D) Neither options are correct.

Question 10

Would A be liable if he knowingly induced B to break his contract with C?