Help with Privity of contract and Damages??

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und3niable_
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#1
Report Thread starter 7 years ago
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Can anyone help...
I feel really thick because I've finally hit a brick wall with my contract revision and my exam is next week...I'm really confused about the situations in which a third party can claim damages for a breach of contract.

In a situation where C contracts with D to provide something for X, is X unable to sue due to privity of contract? And what is the Albazero exception?

Finally, how is the case of Alfred Mcalpine v Panatown relevant to this at all?
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TheDefiniteArticle
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Haven't studied contract in a while so I can't help you on Albazero and Panatown (though I remember them being fairly significant for something or other), but it sounds like you're unaware of the effects of the Contracts (Rights of Third Parties) Act which is incredibly significant for this area.
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und3niable_
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(Original post by TheDefiniteArticle)
Haven't studied contract in a while so I can't help you on Albazero and Panatown (though I remember them being fairly significant for something or other), but it sounds like you're unaware of the effects of the Contracts (Rights of Third Parties) Act which is incredibly significant for this area.
We're not supposed to cover privity this year unless we take the advanced module so this tiny bit of excess knowledge i/r to damages is frying my brain. Now I'm not looking forward to the second year! I'm aware of the bars to damages and the Rights of Third Parties Act. But in practice such as in the cases I said, I'm not sure how it all ties in together. I feel like I need it broken down into year 8 language..

My lecture slides/notes/help are equally as confusing as each other and I can't find anything conclusive on the web so this is kind of my last resort.
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und3niable_
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Can anyone help...? :confused:
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TheDefiniteArticle
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Okay, taking a quick look at my notes I think this is the key thing (from the judgment of Lord Diplock at 847):

'In a commercial contract concerning goods where it is in the contemplation of the parties that the proprietary interest in the goods may be transferred to another before any breach causing damage to the goods, an original party to the contract is to be treated as having entered into the contract for the benefit of the other person and may recover the actual loss suffered by that person'.
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TheDefiniteArticle
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And the McAlpine thing essentially seems to be that even under the Albazero exception the promisee may not sue for substantial damages for the benefit of the third party where the third party has obtained the equivalent result in a different way (in that case it seemed to be through a negligent breach of a duty of care).
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und3niable_
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Thank you!
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