Jackson v Horizon Holidays Ltd [1975]

Court: Court of Appeal

Facts: Mr. Jackson booked a holiday for himself and his family through Horizon Holidays. The holiday was substandard, causing distress and disappointment. Jackson sued for damages not only for himself but also on behalf of his family members.

Issue: Can damages be awarded for disappointment and distress to third parties in a contract, such as family members?

Held: Lord Denning MR held that Jackson could recover damages on behalf of his family, even though they were not parties to the contract. The contract was made for their benefit, allowing Jackson to claim for their suffering.

Key Judicial Statement: Lord Denning broke from the traditional rule of privity by allowing recovery for third parties benefiting from the contract, challenging the strict privity doctrine.

💡Leveluplaw: While privity of contract typically limits claims to the contracting parties, courts may recognize third-party interests in consumer contracts, especially where the contract benefits a family or group.