Beswick v Beswick [1968]

House of Lords

Basic Facts: Older Beswick transferred his coal business to D (his nephew) in exchange for regular payments to Older Beswick and £5 per week to Old Beswicks’s wife. After Old Beswick's death, D stopped the payments to his wife. His wife sued both in her personal capacity and through Old Beswicks’s estate.

Issue for the Court: Can a third party sue for the benefit of a contract?/What remedies does a promisee have on behalf of the third party for a breach?

Held : The court decided that a third party cannot personally enforce a contract but can claim remedies through the estate of the original contracting party.

• Lord Reid found that Old Beswick’s wife could not enforce the contract personally but could claim specific performance through Old Beswick’s estate. Nominal damages were insufficient due to the significant loss suffered.

• Lord Hodson: Specific performance was an appropriate remedy to ensure fairness and adequacy for the estate.

• Lord Pierce: Emphasized that substantial damages were justified given the significant loss if specific performance was not ordered.

💡Leveluplaw : This case is crucial for privity of contract principles and remedies, allowing a third party to enforce a contract through the estate and setting a precedent for specific performance as a remedy for breach.