Chapter 7Introduction to the law of contract4 To what extent, if at all, is it possible to bind or
benefit a person under the terms of a contract to
which he or she is not a party?
5 Limited Horizons Holiday plc engaged Mandy, a
modern languages undergraduate, to act as its
representative for its Majorcan Culture holidays for a
summer season for a lump sum of £3,000 and all
accommodation, food and travelling expenses. A
term of the contract requires Mandy to attend a total
of five training days before commencing the job.
Some of the training days are held during Mandy’s
examinations and, as a result, she only attends on
three days. On 5 June, only 10 days before she was
due to fly out to Majorca, Limited Horizons informs
her that her services will not be required. Mandy
is furious and, although she has been offered
alternative employment in the local corner shop
working part-time for £7 per hour, she decides to go
to Majorca anyway. She spends the entire summer
holiday in Majorca, living in the same three-star hotel
she would have been based at under the terms of
her contract with Limited Horizons. Her total
expenses are £4,000. On her return to the UK she
writes to Limited Horizons demanding payment of
the £3,000 lump sum and reimbursement of her
expenses of £4,000.
Advise Limited Horizons.265
http://www.lawcom.gov.ukThe Law Commission’s website
contains copies of Law Commission Reports, including
Privity of Contract: Contracts for the Benefit of Third Parties,
prepared by the Commercial and Common Law team.
http://www.oft.gov.ukThe Office of Fair Trading’s
website provides information about competition regulation,
including the Competition Act 1998 and the Enterprise
Act 2002.
http://www.competition-commission.org.ukThe
Competition Commission (CC) is an independent public
body which undertakes inquiries into mergers, markets
and the regulation of certain regulated industries. You can
access CC reports from this website, such as the BAA
Airports investigation.
http://www.ucc.ie/law/restitutionA site hosted by Steve
Hedley of University College Cork which provides links and
resources on the subject of quasi-contract, restitution and
unjust enrichment.
http://www.payontime.co.ukThe Better Payment Practice
Group operates this site. It provides information and
advice for businesses about the implementation of the
Late Payment of Commercial Debts (Interest) Act 1998.Website references
Visit http://www.mylawchamber.co.uk/riches
to access selected answers to self-test questions in the
book to check how much you understand in this chapter.Use Case Navigatorto read in full some of the key cases
referenced in this chapter:
Carlill vCarbolic Smoke Ball Co.[1893] 1 QB 256
Brinkibon Ltd vStahag Stahl und Stahlwarenhandelsgesellschaft
mbH[1982] 1 All ER 293
Butler Machine Tool Co. Ltd vEx-Cell-O Corpn (England) Ltd[1979]
1 All ER 965
Central London Property Trust Ltd vHigh Trees House Ltd[1947] KB 130
Ruxley Electronics and Construction Ltd vForsyth[1996] AC 344
Williams vRoffey Bros & Nicholls (Contractors) Ltd[1991] 1 QB 1CASEPOWERED BY