Contracts issues and Ratios

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CONTRACTS-Issues-and-Ratios

Lensen v. Lensen

Ratio
Part performance sufficient to satisfy te Statue of Frauds requires acts which unequivocally refer to or are indicative of some contract to transfer the land. The acts need not unequivocally refer to or e indicative of the contract alleged.

Lecture 10

Privity of Contract

History of Doctrine of Privity and Third Party Beneficiaries

Provender v. Wood	Issues Can the plaintiff sue even though he was not a party to the contract? Ratio The party to whom the benefit of a promise accrues may bring the action. NOTE: Old case, has not been followed
Tweddle v. Atkinson	Issues Could the Plaintiff sue on the contract established between the two fathers which was made for the Plaintiff’s benefit? Ratio No stranger to the consideration of a contract can derive the benefits of a contract, even if it is made for his/her benefit. Natural love and affection is not sufficient consideration.
Dunlop Pneumatic Tyre Co. Ltd. v. Selfridge & Co. Ltd.	Issues Could Dunlop enforce the contract made between Dew and Co. and Selfridge? Ratio Only a person who is a party to a contract can sue on it. If a person with whom a contract has been made is to be able to enforce it, consideration must have been given by him to the promisor or to some other person at the promisor’s request. A principal not named in the contract may sue upon it if the promisee really contracted as his agent. A third party not named in the contract may sue on it if they have shown to have given consideration.
Beswick v. Beswick (C.A.)	The effect of the Doctrine of privity may also be avoided if the promise is able and willing to bring an action for specfic performance of the promise

Ways a Third Party May Acquire the Benefit

Trust

Vandepitte v. Preferred Accident Insurance Co.

Issues
Was there a trust relationship that allows the plaintiff/appellant to recover from the insurance company?
Ratio
A trust will only arise to benefit a third party beneficiary in circumstances where it is clear that the parties actually intended to create a trust relationship.
NOTE: This case could have avoided all difficulties if they had sued the father rather than the daughter.

Agency

McCannell v. Mabee McLaren Motors Ltd.

Issues
Was there a contract between the two dealers so as to avoid the Doctrine of Privity?
Ratio
If the promisee is contracting as an agent on behalf of a third party, then the Doctrine of Privity has no application between the third party and the promisor.

New Zealand Shipping Co. Ltd. v. A.M. Satterthwaite & Co. Ltd.

Issues
Whether NZ Shipping can receive the benefit of the time limitation clause?

Does the limited liability clause in the bill of lading apply to New Zealand Shipping Co Ltd in this case?

Ratio
A party may act as an agent for the purposes of communicating an offer so as to avoid the application of Doctrine of Privity.

(In this Case a unilateral offer allowing for the reliance on an exclusion clause in the bill of lading once performance occurs).

Employment

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