Woodar Investment Development Ltd v Wimpey Construction UK Ltd
Encyclopedia
Woodar Investment Development Ltd v Wimpey Construction UK Ltd [1980] 1 WLR 277 is an English contract law
case, concerning the doctrine of Privity
should be followed so they could claim for a benefit to be given to a third party.
into holding that the £150,000 could be recovered.
English contract law
English contract law is a body of law regulating contracts in England and Wales. With its roots in the lex mercatoria and the activism of the judiciary during the industrial revolution, it shares a heritage with countries across the Commonwealth , and the United States...
case, concerning the doctrine of Privity
Privity in English law
Privity is a doctrine in English contract law that covers the relationship between parties to a contract and other parties or agents. At its most basic level, the rule is that a contract can neither give rights to, nor impose obligations on, anyone who is not a party to the original agreement, ie a...
Facts
Wimpey Investment Development Ltd contracted to buy land from Woodar Construction UK Ltd for £850,000. On completion of the purchase, Wimpey was meant to pay a further £150,000 to a third party, Transworld Trade Ltd. Wimpey terminated the contract alleging they were allowed where statutory authority had started a compulsory purchase. Woodar said this was a repudiatory breach and claimed the full £1m. The claimants argued that Jackson v Horizon Holidays LtdJackson v Horizon Holidays Ltd
Jackson v Horizon Holidays Ltd [1975] 1 WLR 1468 is an English contract law case, concerning the doctrine of Privity. The case would now be partly resolved by the Contracts Act 1999 section 1, allowing a third party to claim independently...
should be followed so they could claim for a benefit to be given to a third party.
Court of Appeal
The Court of Appeal, Buckley, Lawton and Goff LJJ held reluctantly that they were bound by Jackson v Horizon Holidays LtdJackson v Horizon Holidays Ltd
Jackson v Horizon Holidays Ltd [1975] 1 WLR 1468 is an English contract law case, concerning the doctrine of Privity. The case would now be partly resolved by the Contracts Act 1999 section 1, allowing a third party to claim independently...
into holding that the £150,000 could be recovered.
House of Lords
The House of Lords held by a majority (Lord Salmon and Lord Russell dissenting) that there had in fact been no repudiatory breach. But as obiter dicta they discussed where the Court of Appeal was right that if Woodar did have a good claim for breach of contract, they could claim damages on behalf of Transworld Trade Ltd. Lord Wilberforce said that Jackson could be supported on its special facts, as a type of contract including family holidays, ordering meals in restaurants and hiring a taxi for a group. But here the ‘factual sitation is quite different.’See also
- English contract lawEnglish contract lawEnglish contract law is a body of law regulating contracts in England and Wales. With its roots in the lex mercatoria and the activism of the judiciary during the industrial revolution, it shares a heritage with countries across the Commonwealth , and the United States...
- Darlington BC v Wiltshier Northern Ltd [1995] 1 WLR 68