BU231 Lecture Notes - Life Insurance
Document Summary
Who should you sue when a promise that was made to you is not fulfilled: logical answer is the guy who made the promise. Answer: party to the contract- logically who we sue, only people in contract have obligation to fulfill it is called privity of contract. Exceptions to the privity rule: tort liability. Manufacturers liability- different than people in the contract. All of tort rule is exception to privity rule. Buy life insurance- contract with insurance company. Kids of person who dies sue insurance for not paying. Therefore exception: vicarious performance- someone else does it for you. What if someone wrongly performs for you. Equitable modification: novation- end the contract. Tool rather than an exemption around the privity rule. Create obligation/right between landlord and tenant to be able to occupy that. If bound by contract, someone can sue you. If sublet room, and they damage, landlord will sue you location.
