Chapter 4 Self-test questions

Chapter 4 Self-test questions

Privity and third party rights

Quiz Content

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. To enforce a contract according to the Contracts (Rights of Third Parties) Act 1999, a third party must show that it has provided consideration under the contract.

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. Which one of the following statements relating to the test of enforceability in s. 1 of the Contracts (Rights of Third Parties) Act 1999 is true?

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. The Contracts (Rights of Third Parties) Act 1999 abolishes the common law doctrine of privity of contract.

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. Which one of the following statements relating to the hypothetical applicability of the Contracts (Rights of Third Parties) Act 1999 to the facts of New Zealand Shipping Co Ltd v A M Satterthwaite & Co Ltd, The Eurymedon [1975] AC 154 is true?

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. According to s. 2(1) of the Contracts (Rights of Third Parties) Act 1999, in which one of the following circumstances may the contracting parties lose their rights to vary or cancel a contract term granting a third party rights without that third party's consent?

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. The Contracts (Rights of Third Parties) Act 1999 preserves the promisee's right to enforce the promise but requires the promisee to pass any damages recovered from the promisor to the third party beneficiary.

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. Where a promise is made for the benefit of a third party and the promisee expressly declares itself to be a trustee, on behalf of the third party, of a right to enforce the promise, the third party may enforce the promise against the promisor in its own right.

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. A employs B Ltd to build a conservatory for her house. C, a self-employed glass supplier, indicates to A that, if B buys glass from him, he guarantees that his glass is of high quality and suitable for the conservatory. A instructs B to buy glass from C. B then enters into a contract with C for the purchase of glass, which does not mention A or her conservatory. The glass supplied by C proves to be defective. A attempts to claim damages from C. Which one of the following statements are likely to be true?

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. A contacts B's company to hire a minibus to transport A and a group of other people to London. Due to the negligence of one of B's employees, the minibus breaks down in transit and A and other passengers have to pay a much higher fee to hire several taxis to complete the journey. A claims the difference between the total taxi fees and the hire from B. Which one of the following statements most accurately summarises the legal position between A and B?

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. To enforce a term under the Contracts (Rights of Third Parties) Act 1999, the third party must, according to the test of enforceability in s. 1, be expressly identified in the contract by name, as a member of a class or as answering a particular description but need not be in existence when the contract is entered into.

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