Case Summary

Price v Easton (1833) 110 ER 518

Contract; formation; privity; parties.

Facts: A builder owed money to Price but did not have the money to pay what he owed. Easton agreed with the builder that if the builder did some work for Easton, Easton would pay Price the money that the builder owed to Price. The builder did the work, but Easton failed to pay Price. There was no point in Price suing the builder for what the builder owed him because the builder still had no money. The builder had no reason to enforce the contract against Easton, because Easton had not promised to pay any money to the builder. Price therefore brought an action against Easton to enforce the promise that Easton had made to the builder that Easton would pay Price.

Issue: Was Price entitled to enforce Easton's promise to the builder that Easton would pay Price?

Decision: Price was not entitled to enforce the promise.

Reason: Price was not a party to the agreement between Easton and the builder and, under the doctrine of privity of contract, Price did not acquire legally enforceable rights under that contract.