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This case ([1980] 1 All ER) demonstrates some of the issues assocated with privity (see: Privity Of Contract) and how a strict application of the doctrine of privity led to injustice.

Woodar contracted to sell some land to Wimpey, for £850,000, on the understanding that £150,000 would be paid to a third party on completion. Wimpey backed out of the deal without paying any money, leaving Woodar to make a claim under the contract. This they could not do, because Wimpey pointed out that Woodar would have no claim on the the £150,000 (privity), and the beneficiary of this money would have no claim as there was no contract in place to support it.