BU231 Chapter Notes - Chapter 11: Intangible Property, Intestacy, Negotiable Instrument
Document Summary
Sometimes situations arise where justice or business convenience require that a contact affect the rights of people outside. Third party: a person who is not one of the parties to a contract buy is affected by it. Privity of contract: the relationship that exists between parties to a contract. Also called outsider or stranger to the contract. General rule contract does not give any benefits to or impose any obligations on a stranger to the contract. To win a contract lawsuit the plaintiff must prove privity of contract with the defendant must show that both parties are in the same contract. Third parties" can"t give consideration for the promise, therefore can"t sued or be sued. However, signing a contract under seal could solve this. Liability of manufacturers: manufacturers are liable in tort to the consumer for damages caused by their defective products.
