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Review Your SQE 1 Practice Records

Examination Timing: 00H00M22S

John buys a television from a shopkeeper on 24 December as a gift for his daughter, Emily. He does not inform the shopkeeper that it is a gift for someone else. When Emily opens the box, she discovers the television is defective. She travels to the shop on 26 December and asks for a replacement or refund. The shopkeeper refuses. 

What advice should be given to Emily?

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The principle of privity of contract dictates that only parties to the contract have rights and obligations under it. In this scenario, John is the party to the contract with the shopkeeper, not Emily. Therefore, Emily has no contractual rights to demand a replacement or refund directly from the shopkeeper. Instead, John, who is the contracting party, must assert his rights under the contract for a remedy. 

Key Point: This question highlights the principle of privity of contract, which is fundamental in contract law. It emphasizes that only those who are parties to a contract can enforce its terms or seek remedies for breach, an essential concept for understanding contractual rights and obligations.

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