Privity of contract means that only those parties who are bound by a contract can benefit
from its existence as in Dunlop Pneumatics Tyres v Selfridge where Selfridge was a third party and
could, therefore, not be liable under the term imposed by Dunlop. In this case…
However, in Jackson and Horizon Holidays the court established that this rule does not apply where
it creates injustices to those affected by the breach and they could be awarded remedies. S1 of the
Contracts (Rights and Remedies) 1999 also allows those identified in the contract to be included in
the privity. In this case…
The Consumer Rights Act (CRA) 2015 describes a consumer as ‘an individual acting for purposes that
are wholly or mainly outside that individual’s trade, business, craft or profession’ whereas a trader is
defined as ‘a person acting for purposes relating to that person’s trade, business, craft or
profession’.
S9 of the CRA 2015 defines safisfactory quality as where goods meet the standard that a reasonable
person would consider satisfactory.
Rogers v Parish
The C bought a Range Rover which was listed as new, however, it turned out that it had some
defects.
The Range Rover was not of satisfactory quality as a new one would not have presented those
defects.
S10 of the CRA 2015 defines fitness for purpose as where the good fulfils the purpose for which it is
required.
Barldry v Marshall
The buyer had asked the seller to supply to him a fast, flexible and easily manageable car that would
be comfortable for everyday usage. The seller supplied to him a Bugatti. The buyer argued that this
was not fit for purpose and the court agreed.
S11 of the CRA 2015 states that the good must match the description given by the seller.
Beale v Taylor
The buyer purchased a car described to be a 1961 model. However it
turned out to be formed half by a 1961 parts and half by earlier model
parts.
The good did not fully match the description.
S.20, 23 and 24 of the CRA 2015 provide remedies for breach of implied terms in a contract for sale
fo goods.
S.20 is concerned with the short-term right to reject which must be within 20 days of the delivery of
the goods.