Land Law

Covenants cases

Contract Law

Privity Cases

Beswick v Beswick [1968] AC 58

Key Points

• The House of Lords upholds the privity rule, but permits an quasi-exception in this case by granting specific performance in lieu of nominal damages to produce a just result for the third party.
• Section 56 LPA 1925 allows unnamed covenantees to enforce a covenant, but not non-convenantees who are not part of the deed.

Facts

• Peter Beswick (P) contracted with his nephew (D) to transfer his coal business in consideration of the nephew paying his widow (C) after his passes.
• When P died D refused to pay C.
• C as administratrix is a party to the contract whereas C in her personal capacity is a third party.
• C sued both personally and in her capacity as the administratrix of P's estate for breach of contract.
• C argued that Section 56 LPA 1925 allows her to sue in her personal capacity and recover the benefit provided for her in the agreement although she was not a party to it.
  • Section 56(1) provides: "A person may take an immediate or other interest in land or other property, or the benefit of any condition, right of entry covenant or agreement over or respecting land or other property, although he may not be named as a party to the conveyance or other instrument: ..."