Jackson v Horizon Holidays Ltd
Encyclopedia
Jackson v Horizon Holidays Ltd [1975] 1 WLR 1468 is an English contract law
English contract law
English contract law is a body of law regulating contracts in England and Wales. With its roots in the lex mercatoria and the activism of the judiciary during the industrial revolution, it shares a heritage with countries across the Commonwealth , and the United States...

 case, concerning the doctrine of Privity
Privity in English law
Privity is a doctrine in English contract law that covers the relationship between parties to a contract and other parties or agents. At its most basic level, the rule is that a contract can neither give rights to, nor impose obligations on, anyone who is not a party to the original agreement, ie a...

. The case would now be partly resolved by the Contracts (Rights of Third Parties) Act 1999
Contracts (Rights of Third Parties) Act 1999
The Contracts Act 1999 was an Act of the Parliament of the United Kingdom that significantly reformed the common law Doctrine of Privity and "thereby [removed] one of the most universally disliked and criticised blots on the legal landscape"...

 section 1(1)(b), allowing a third party to claim independently. Some of the reasoning of Lord Denning MR was disapproved in Woodar Investment Development Ltd v Wimpey Construction UK Ltd
Woodar Investment Development Ltd v Wimpey Construction UK Ltd
Woodar Investment Development Ltd v Wimpey Construction UK Ltd [1980] 1 WLR 277 is an English contract law case, concerning the doctrine of Privity-Facts:...

, which held that the decision is limited to a confined category of cases involving consumers.

Facts

Mr Jackson got a holiday through Horizon Holidays Ltd to the Brown Beach Hotel, Hendala Point, in Ceylon (now Sri Lanka
Sri Lanka
Sri Lanka, officially the Democratic Socialist Republic of Sri Lanka is a country off the southern coast of the Indian subcontinent. Known until 1972 as Ceylon , Sri Lanka is an island surrounded by the Indian Ocean, the Gulf of Mannar and the Palk Strait, and lies in the vicinity of India and the...

) for himself and his family. He paid £1200. When they arrived, the facilities were substandard, and not at all as promised. As Lord Denning MR recounted,
The judge followed Jarvis v Swans Tours Ltd
Jarvis v Swans Tours Ltd
Jarvis v Swans Tours Ltd [1972] is an English contract law case on the measure of damages for disappointing breaches of contract.-Facts:Mr. Jarvis was a solicitor for Barking Council. He chose to go for Christmas holiday in Switzerland. He got a brochure from Swan Tours Ltd, which for Mörlialp,...

and awarded damages of £1100 for distress. Mr Jackson appealed for extra losses suffered by his wife and children.

Judgment

Lord Denning MR held that Mr Jackson could recover damages of £600 for defective performance and £500 for disappointment or ‘mental distress’ for himself and his family.
Lord Denning MR also held that the family might even, if desired, be joined as plaintiffs, that the initial award of £1100 was ‘about right’, and opined that other instances where a good claim may exist include a vicar contracting for a coach trip for the choir and a host booking a restaurant dinner for himself and his friends.

James LJ and Orr LJ concurred, but did not really explain their reasons.
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