9. Law,00720 Legal Studies Question 2022

LAW00720 Legal Studies
9/13/2019
Student’s Name

1
Contents
Question 1 (A)..................................................................................................1
Issue.............................................................................................................1
Rules.............................................................................................................2
Application....................................................................................................3
Conclusion....................................................................................................4
Question 1 (B)..................................................................................................4
Issue 1..........................................................................................................4
Rules 1..........................................................................................................4
Application 1.................................................................................................5
Conclusion 1.................................................................................................5
Issue 2..........................................................................................................5
Rules 2..........................................................................................................6
Application 2.................................................................................................6
Conclusion 2.................................................................................................7
Question 2.......................................................................................................7
Issue.............................................................................................................7
Rules.............................................................................................................7
Application....................................................................................................9
Conclusion..................................................................................................11
References.....................................................................................................12

2
Question 1 (A)
Issue
What legal rights, Roberta has in the given situation?
Rules
A contract gives rise to rights and obligations for all the parties to a contract.
In this manner, identification of parties becomes important because rights
and obligations related to them only and cannot confer up to any other
person who is not a party to the contract. A doctrine named privity of
contract is an important concept under common law. The doctrine prevents
every third party to takes rights under a contract
(Australiancontractlaw.com, 2019). While discussing the doctrine of privity of
contract, the case titled
Dunlop Pneumatic Tyre Co Ltd v Selfridge and Co Ltd
[1915] AC 347 is necessary to discuss here. In this case, the court denied to
enforce the contract due to the privity of contract. This doctrine does not
only prevent the third party by getting rights under a contract in general but
also in those in those situations where such third party was intended to
receive benefit under a contract. However, in some exceptional
circumstance, even a third party can receive rights or obligation under a
contract. These exceptions include contracts that are related to transfer or
land or any interest in the same. In addition to this, a third party may also
sue under negotiable instruments.

3
Agency law also seems to be another exception to privity of contract where a
third party i.e. agent gets some rights and responsibility where the
immediate parties are principal and outsider (Agarwal, 2018). However, an
agent actually deals on behalf of the principal and in this manner;
somewhere steps into the shoes of the contracting party. Such agency may
be formed by giving various types of authority. Mainly two types of
authorities are there.
Actual authority:-The very first authority is the actual authority that has two
types further. First is an express authority. As the name implies, it is an
authority where the principal gives specific powers to an agent either in the
oral or written mode (Dundaslawyers.com.au, 2018). The second type of
authority is named as an implied authority. An authority is not
communicated by the principal to the agent but exists because of express
authority. In other words to say that an implied authority is the one that is
required to fulfill the obligations under an express authority. The third party
may assume the existence of implied authority due to the position held by an
agent
Ostensible Authority:- This is another kind of authority which is available to
agents under an agency relationship. An ostensible authority presents where
a principal makes certain representations that lead a belief to the third party
that another person is the agent of such principal. If any of such authority