Contract law Essay Example | Topics and Well Written Essays - 2000 words - 4

Contract law - strive ExampleThe Law reform Commission, in its Consultation Paper titled Privity of Contract Third society Rights launched on 14 November 2006, has recommended that the rules of privity be amended such that where the parties to a signalise clearly intend a third party to benefit, then that party be allowed to sue if terms are not carried out.2 Moreover, the existing exceptions to the Rule of Privity are also to be preserved. However, in view of the numerous exceptions and exclusions that exist to the Doctrine of Privity of Contract, the interrogation that arises is whether these reforms are really necessary? As stated by Trietel, the many exceptions to the Doctrine of Privity make it passable in practice but they have provoked the question whether it would not be better however to modify the doctrine or to abolish it altogether.3For example, ane of the exceptions that exist is the provision for collateral contracts, where one of the parties to the original co ntract may have a collateral contract with a third party that relates to the same subject matter of the original contract. In the case of Shanklin Pier v Detel Products4 the Plaintiffs had a contract with some contractors. However these contractors recommended that the plaintiffs purchase paint from the defendants, which was guaranteed to last seven years. When it lasted for only three months, the plaintiffs sued and the Court held that contempt the existing contract with the Contractors, plaintiffs could sue defendants under the collateral contract arrangement which existed, thereby allowing for action against a third party.Collateral contracts also provided the means for a third party to circumvent the doctrine of Privity in the case of Andrews v Hopkinson.5In this case the Plaintiff bought a car from a defendant who assured him that it was in good condition. The Plaintiff bought the car on a hire purchase arrangement and had it financed through a finance Company and