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exception to privity of contract

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA LW Exams › exception to privity of contract

  • This topic has 1 reply, 2 voices, and was last updated 12 years ago by MikeLittle.
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  • August 7, 2012 at 3:09 pm #53907
    Vipin
    Member
    • Topics: 151
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    In BPP study text, there are a number of exceptions to privity of contract is mentioned. One of them is foreseeable loss to the third party, and the example case is Linden Gardens Trust Ltd v Lenesta Sludge DIsposals Ltd.
    It is perfectly in line with privity of contract and i didnt find it as an exception.both the defendant and claimant are in contract itself, so i dont get their logic.

    SIr Mike, any help appreciated.

    August 7, 2012 at 4:13 pm #102430
    MikeLittle
    Keymaster
    • Topics: 27
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    Hi Vipin

    Read the case again! The “proper” plaintiff, the one who has suffered, is the subsequent purchaser. But that subsequent purchaser doesn’t have a claim under privity of contract because the work was not done under a contract with that subsequent purchaser. And Linden Gardens didn’t suffer, because they had sold the property. But, because the subsequent sale was in the contemplation of both parties, Linden was able to sue on behalf of the innocent third party purchaser.

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