PRIVITY OF CONTRACT, DISCHARGE, AND REMEDIES PROFESSIONAL ENGLISH IN USE FOR LAW

 

PROFESSIONAL ENGLISH IN USE FOR LAW 36. PRIVITY OF CONTRACT, DISCHARGE, AND REMEDIES

 

A Privity of contract The principle of privity of contract means that a third party can neither be bound by nor enforce a term of a contract to which they are not a party, even though the contract was intended to confer a benefit on them. However, since the enactment of the Contract (Rights of Third Parties) Act 1999, such a party may be able to enforce contractual rights depending on the circumstances. If appropriate, it is now usual for contracts to include a clause which provides that such rights are not to apply. B Discharge of contract Parties may be released from their contractual obligations, that is, may be discharged, by performance, by breach, by agreement, or by frustration. If a contract is substantially performed, the terms are entirely carried out and there is no right to repudiate the contract, that is, to reject it. If a contract is partly performed, a breach of condition is committed. C Remedies for breach of contract An award for damages – money claimed as compensation for loss – is the primary remedy for a party who suffers a breach of contract. In some circumstances, the courts may use their discretion to compel a defaulting party to perform his contractual obligations. This is known as a decree of specific performance. It may not be appropriate EXERCISES 36.1 Complete the definitions. Look at A opposite to help you. 1. ______________- a person who represents another in matters relating to a contract 2. ______________ ______________- a person who, although not party to a transaction between two others, is in some way affected by it. 3. ______________ ______________ ______________- the relationship between parties to a contract which makes the contract enforceable between them. 36.2 A solicitor has given her assistant some instructions. Replace the underlined words and phrases in her notes with alternative words and phrases from B opposite. Pay attention to the grammatical context. Jane, Marie’s just typed up some background notes from a short meeting I had with a client. Can you look into the following questions and get back to me? Thanks Anna 1. Can she be set free from her agreement? 2. Can she claim there was a fault in the carrying out of the contract? 3. Has a breach of condition or a breach of warranty taken place? 36.3 Choose the correct word or phrase in brackets to complete the sentences. Look at C opposite to help you. 1. A contract may be (restrained/ rescinded/ compelled) if the court finds there was misrepresentation of the facts. 2. Courts may use (rescission/ misrepresentation/ discretion) to grant damages.

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