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contract right act of 3rd party

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA LW Exams › contract right act of 3rd party

  • This topic has 1 reply, 2 voices, and was last updated 8 years ago by AvatarMikeLittle.
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  • January 19, 2018 at 7:18 pm #431365
    Avatarhumai
    Participant
    • Topics: 757
    • Replies: 248
    • ☆☆☆☆☆

    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?

    a) R can enforce the agreement on the basis of his deceased wife’s wishes
    b) R cannot enforce the agreement because the promise to pay is not consideration
    c) R can enforce the agreement because the promise of $24 per year provides consideration for it
    d) R cannot enforce the agreement because the promise of $24 per year is not sufficient consideration.

    Sir, correct answer is C, but please explain me that why the answer cannot be a) also? Because according to contract rights of 3rd party act 1999, successor R can also enforce the contract as the contract was for his benefit and he was expressly identified in it?

    January 19, 2018 at 8:36 pm #431379
    AvatarMikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23368
    • ☆☆☆☆☆

    Because the “wishes” of a dying person are not sufficient to be classed as definitive and the case upon which this is based was from some many years before 1999

    OK?

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  • The topic ‘contract right act of 3rd party’ is closed to new replies.

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