Woodar Investments v Wimpy Construction [1980]

Facts

  • As part of a construction contract, Wimpy Construction were obliged to pay £150,000 to a third party on completion of the project
  • Wimpy Construction ended the contract before paying the £150,000

Issue

  • Could Woodar Investments claim the £150,000 on behalf of the third party

Decision

  • No recovery

Reasoning

  • Affirming the usual common law rule of privity of contract, recovery for or by a third aprty is not permitted
  • This case reversed the decision in Jackson v Horizon Holidays [1980]
RELATED CASE  Experience Hendrix v PPX Enterprises [2003]

Posted in Contract Law Revision Notes.

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