Dunlop Pneumatic Tyre Co Ltd v Selfridge & Co Ltd
[1915] AC 847
Ratio Decidendi
Only a party to a contract can sue on it (privity of contract). A person who is not a party to a contract cannot enforce a promise made for their benefit, even if they are the intended beneficiary.
Facts
Dunlop sold tyres to Dew & Co (a dealer) on terms that Dew would not sell below list price and would obtain a similar undertaking from retailers. Dew sold to Selfridge, who agreed not to sell below list price. Selfridge sold below list price and Dunlop sued.
Judgment Summary
The House of Lords held that Dunlop could not enforce the agreement between Dew and Selfridge. Dunlop was not a party to that contract and had provided no consideration to Selfridge. The doctrine of privity prevented the claim.
Key Quotes
"In the law of England certain principles are fundamental. One is that only a person who is a party to a contract can sue on it."
— Viscount Haldane LC
Subsequent Treatment
The Contracts (Rights of Third Parties) Act 1999 now allows third parties to enforce contractual terms in certain circumstances, modifying the strict privity rule.