COMMERCE 4SD3- Midterm Exam Guide - Comprehensive Notes for the exam ( 143 pages long!)
11 Oct 2017
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Document Summary
Ch 12: privity of contract and the assignment of contractual rights. Limits on the scope of contractual rights and duties: Third party: a person who is not one of the parties to a contract but is affected by it. Privity of contract: the relationship that exists between parties of a contract. A contract creates a body of law only affecting on the rights and duties of the parties of the contract: third parties/strangers are not held accountable for the terms of a contract. To be successful in law you have to prove privity of contract with a party. A third party cannot sue on a contract because they never gave consideration for the promise or received it from the person suing the third party. Vicarious performance: a third party performs on behalf of the promisor who remains responsible for proper performance. Cannot assign liability to a third party without permission of the promisee (assignment)
