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Privity of contract

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA LW Exams › Privity of contract

  • This topic has 1 reply, 2 voices, and was last updated 8 years ago by AvatarMikeLittle.
Viewing 2 posts - 1 through 2 (of 2 total)
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  • December 1, 2017 at 6:30 pm #419483
    Avatarhumai
    Participant
    • Topics: 757
    • Replies: 248
    • ☆☆☆☆☆

    Sir I asked you a question earlier that: R’s wife K expressed the wish that R, if he survived her, should have the use of her house. After K’s death her executor agreed to allow R to occupy the house a) because of K’s wishes and b) on the payment by R of $24 per year

    R seeks to enforce this agreement and the Executor wishes to avoid it in order to sell the house. What is the legal position?

    Sir , here can’t R enforce the agreement on the basis of his deceased wife’s wishes, on the basis of 2 exceptions of the privity of contract which are as follows:

    1) Contract was for 3rd party (R) and he was expressly identified in it

    2) Successor (R) can enforce contracts made by the deceased (K)  for whom he is acting.

    December 2, 2017 at 12:26 am #419543
    AvatarMikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23368
    • ☆☆☆☆☆

    From my perspective the only matter necessary forthe executor to acknowledge was that R was to pay £24 per annum

    That may appear to be an inadequate amount … possibly qualifying to be described as a peppercorn rent … But, as a learned judge famously stated, “A peppercorn has a value and even though the other party may not like pepper and throws away the corn, it nevertheless has a value”

    So my judgement, as Lord Justice Little, would be that R should be entitled to live in the house for as long as R chooses and continues to pay £24 per annum

    OK?

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    Posts
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  • The topic ‘Privity of contract’ is closed to new replies.

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