BU231 Lecture 7: Privity of Contract
Document Summary
Privity of contract & assignment of contractual rights. The relationship that exists between the parties to a contract. Must always know who has privity as that will tell who can sue. Privity is always there you must question who has privity: rule: If there is no privity between the parties, then there is no right to obtain legal remedy based in contract law. There may be opportunity to obtain legal remedy through tort law where applicable: rule can have harsh results therefore systems have been developed to get around the rule, novation: The termination of one contract and the creation of a new contract with the same or similar terms to introduce the 3rd party to the contract. Has the effect of releasing the original party to the contract. Tim owns a book store and has been buying books from dean for the past 20 years. Dean delivers books on time, but does not receive any money.
