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CELE SQE1 模拟练习

Examination Timing: 00H00M02S

Harrison & Co sell widgets to a dealer who then sells them to HomeFix DIY for high street sale. The dealer is restricted to selling the widgets at prices set by Harrison & Co or to trade to customers at a discount of 12%, provided the secondary customers then sell at Harrison's chosen price. HomeFix DIY has been selling the widgets below the recommended list price.


Under the common law rules of privity of contract, can Harrison & Co restrain HomeFix DIY from selling its widgets on terms other than those specified in its agreement with the dealer?

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Harrison & Co cannot restrain HomeFix DIY from selling the widgets at prices below the recommended list price because there was no consideration moving from Harrison & Co to HomeFix DIY. The contract was between Harrison & Co and the dealer, not with HomeFix DIY. The principle of privity of contract, as established in Dunlop Pneumatic Tyre Co Ltd v Selfridge & Co Ltd [1915] AC 847, states that only parties to a contract can enforce it or be bound by its terms. Since HomeFix DIY was not a party to the contract between Harrison & Co and the dealer, they are not bound by its terms.


Key Point: The doctrine of privity of contract in English law ensures that only those who are party to a contract can enforce its terms or be held liable under it. This principle maintains clarity and fairness in contractual obligations by restricting enforcement to those directly involved in the agreement.

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