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Words: | Submitted: Mon Nov 08 2004
... would both pay money to the groom, the third party beneficiary under the contract. When the third party, William Tweddle, sued A for the sum promised he failed, on the basis that 'consideration did not move from the plaintiff, William Tweddle.' This doctrine was approved by the House of Lords in 1915 in the case of Dunlop Pneumatic Tyre Co. Ltd v Selfridge. The appellant company, Dunlop Pneumatic Tyre Co., had a practise of insisting that dealers signed a contract not to sell Dunlop tyres for less than a certain price. The appellants sold some tyres to another company, Jew, who then subsold the tyres to Selfridge, who sold the tyres below the list price. The appellants sued Selfridge for breach of contract, on the basis that they (Dunlop) were an undisclosed principle. They failed on the basis that no consideration had moved from them to the defendants, thus the ...
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