Beswick v. Beswick

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Beswick v. Beswick (1966) Ch. 538, [1968] AC 58 is a landmark English contract case on privity of contract.

[edit] Background

Lord Denning famously described the facts of the case:

"Old Peter Beswick was a coal merchant in Eccles, Lancashire. He had no business premises. All he had was a lorry, scales, and weights. He used to take the lorry to the yard of the National Coal Board, where he bagged coal and took it round to his customers in the neighbourhood. His nephew, John Joseph Beswick, helped him in his business. In March 1962, old Peter Beswick and his wife were both over 70. He had had his leg amputated and was not in good health. The nephew was anxious to get hold of the business before the old man died. So they went to a solicitor, Mr. Ashcroft, who drew up an agreement for them".

The agreement between Peter and his nephew, John, was to pay an annuity to Mrs. Beswick in exchange for assistance in his business. Since the contract was for the benefit of someone not party to the contract, John did not believe it was enforceable and so did not fulfill his part.