how to answer a problem question on privity (contract law)?

nickie ? xx

New member
How to go about answering the following question is slightly confusing me:

Harriet is the owner of a dilapidated house in need of refurbishment. Her husband, Ivor, arranges with Jerry Builders Ltd to replace the wiring, plumbing and central heating of the house. The work is to be completed by 1 January; in the event that the work takes longer to complete, Jerry Builders will pay compensation to Harriet and Ivor. Jerry Builders work slowly and proceed in a slip-shod and careless fashion. After a month on the job, Harriet is furious. Jerry Builders return to Ivor and agree, upon the payment of £1 by Ivor, that any action taken over the quality or timing of the work can only be taken by Ivor. Jerry Builders have not finished the job at the end of May. They refuse to pay any money for this delay to Harriet.Advise Harriet.

Any help would be appreciated, I don't want the answer to the problem as I can figure this out myself, my problem is, I don't quite understand the relevance of Ivor having to pay the £1 or the effect this second contract will have on the first, if any. Any ideas? :)
 
Back
Top