A CRITICAL EXAMINATION OF THE DOCTRINE OF PRIVITY UNDER THE LAW OF CONTRACT IN NIGERIA.

A CRITICAL
EXAMINATION OF THE DOCTRINE OF PRIVITY UNDER THE LAW OF CONTRACT IN NIGERIA.

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                                                   ABSTRACT
  
The
doctrine of privity of contract is dynamic and 
inevitable; therefore it must not be taken with levity. In PRICE V
EASTON for instance it was held that no one may be entitled to or bound by the
terms of a contract to which he is not an original party. The doctrine dictates
that a person who is not a party to a contract can not be granted contractual
rights by the contract or be placed under contractual obligation by it. The
question now is “WHY SHOULD WE ALLOW ONLY PARTIES TO A CONTRACT TO HAVE RIGHTS
UNDER IT”. These and more will be discussed in this long essay.
For
the sake of clarity, this long essay will be divided into four (4) chapters.
Chapter 1 looks at the law of contract at a glance (putting into consideration
the fact that the doctrine of privity is sheltered by the law of contract).
The
history of the law of contract and that of the doctrine of privity, the nature
of the law of contract and what makes a contract valid (noting that there are
some agreement that will be seen as a contract by the parties and is not known
to law), the various types of contract 
and the relevance of the contract will also be considered under the
first chapter
Chapter
2 is going to be more precise as we will deal basically with the doctrine of
privity, the rationale for the doctrine and the way it operate, its relation to
some other contractual terms will also be considered here.
Chapter
3 will cover situations in which the doctrine 
will not apply (i.e. its exceptions) such as under an agency
relationship, insurance concept, the provision of sec. 81(1) of the property
and conveying law, western Nigeria,
covenant running with land, etcetera will be looked at.
Chapter
4 being the last chapter will focus on the need for reform of the doctrine by
making some recommendation and suggestions on how best the doctrine can be
applied.



TABLE
OF CONTENTS
Title
page
Certification
Dedication
Acknowledgement
Abstract
Table
of content
Table
of Cases
CHAPTER ONE: LAW OF CONTRACT
1.1.1     The History of the Law of Contract and the
                Doctrine of Privity
1.1.2       The
Nature of the Law of Contract
1.1.3       Definition and Formation of Contract
1.2          Elements of a Valid Contract
1.2.1       Offer
1.2.2       Acceptance
1.2.3       Consideration
1.2.4      Intention to Enter into Legal Relation
1.2.5    Capacity to Enter into a Contract
1.3       Classification of Contract
1.4      Essence of the Law of Contract
CHAPTER TWO: SCOPE OF THE
DOCTRINE OF PRIVITY OF CONTRACT
2.1           
The General Rule
2.1.1   
The Meaning and Nature of the Doctrine
2.2           
Reason for the Doctrine
2.3           
Operation and Application of the
Doctrine
2.4           
Operation of the Doctrine in Relation
to some Contractual terms
2.4.1   
   Privity and Consideration
2.4.2   
  Effects of Privity on Exemption Clause
2.4.3   
  Privity and Collateral Contracts
CHAPTER THREE: EXCEPTION TO THE
DOCTRINE OF PRIVITY
3.1           
Agency
3.2           
Restrictive Covenant (Covenant Running
with Land)
3.3           
Trust Concept and Privity
3.4           
Insurance Concept
3.5           
Banker’s Commercial Credits
3.6           
Assignment of Choses in Action
CHAPTER FOUR
4.1
    Summary
4.2     Conclusion
4.3
    Recommendation
TABLE OF CASES
AKENE V BRITISH
INSURANCE CO. NIG LTD (UNREPORTED)
BESWICK V
BESWICK (1966) Ch, 538
CHUBA IKPEAZU V
ACB LTD (1965) NMLR 374
COLLEN V WRIGHT
(1857) E & B 647, 372
DANJUMA V
STANDARD CO. Of  NIG LTD (1975) 2 CCHJ,
179
DEMPSTER V
PATERSON, ZOCHONIS & CO. (1924) AC 522
DONOGHUE V
STEVENSON (1932) AS 526
DRIVE YOURSELF
HIRE CO.LTD V STRUTT (1954) A QB 250
DUNLOP PNEUMATIC
TYRE CO. LTD V SELFRIDGE & CO LTD (1925) AC 847 (A) 853
DUTTON V POOLE (1678) 2. LEV 210
EKUMA V SILVER
EAGLE SHIPPING AGENCIES (1987) A NLR
FORMBY V BARKER
(1908) 2 Ch 539
GANDY v GANDY
(1834) 30 Ch D 54
GBADAMOSI V
MBADIWE (1964) 2 ANLR 19
GREGORY &
PARKER V WILLIAMS 91817)  3 Mer. 582
HYDE V WRENCH
(1840) 3 Beave. 334
HIRACHAND
PUNAMCHAND V TEMPLE
(1911) 2 K.B 330
JACKSON V
HORISON HOLIDAY LTD (1975) 3 AER,  92
KEPONG
PROSPECTING V SCHIMDT (1968) AC 890
LAW DEBENTURE
TRUST CORP PLC V URAL CASPAIN OIL CORP LTD (1993) 2 AER, 355
Les Affreteur
Reunis SA V Leopold Walford (London)
Ltd (1919) AC 801
LORD STRATHCONA
STEAMSHIP CO. V DOMINION COAL (1926) AC 108
MARCHINGTON V VERNON (1786) 1 B& P
101 N (C )
NASH V INMAN
(1908)
ODUNFUNDADE V
OSO SAMI (1972) NLR 52
PENN V BRISTOL & WEST
BUILDING (1997), WLR 1356
PORTLINE LTD V
BENLINE STEAMERS LTD (1958) A QB 146
PRICE V EASTON (1833) 4 B &
Ad. 433
R & CLARKE
(1927) 40 CLR 227
R V LAMBLE
(1982) AC 449.
RATZLAFF V
FRANZFOODS (1971)
RE HUDSON (1885) 53 L.J CR
811
RE SCHEBSMAN,
OFFICIAL RECEIVER V CARGO SUPERIN TENDENTS (LONDON) LTD (1919) AC 801
SCRUTTONS LTD V
MIDLAND SILICONES LTD (1962) AC 446
SHADRACK ERI V
ONADJERIA DAMIFO (Unreported) H.C of formal Bendel State.
SHANKLIN PIER V
DETEL PRODUCTS LTD (1951) 2 K.B 854
SMITH V RIVER DOUGLAS CATCHMENT BOARD (1949) 2 K.B 504
SULE NORWICH
FIRE INSURANCE CO. (Nig) Ltd (Unreported) H.C of Western
Nig J.P
THE EURYMEDON
(1975) AC 154
THOMAS V THOMAS
(1875) LR 10 EXCL 153
TULK V MOXHAY
(1848) 2 Ph 774
TWEDDLE V
ATKINSON (1861) 1 B & S at P 398
WAUGH v H.B
CLIFFORD & SONS 91982) 1 Ch.
374
WOODAR
INVESTMENT DEVELOPMENT LTD V WIMPEY CONSTRUCTION UK LTD (1988) HL
CHAPTER
ONE: LAW OF CONTRACT
1.1.1 THE HISTORY OF THE LAW OF
CONTRACT AND THE DOCTRINE OF PRIVITY

The
contract idea is ancient. Thousands of years ago, the Egyptians and
Mesopotamians recognized devices like contract, by the 15th century
the common law courts of England  had

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