BU231 Chapter Notes - Chapter 11: Intangible Property, The Undisclosed, Foodborne Illness
Document Summary
Chapter 11: privity of contract and the assignment of. Therefore, number of exceptions have developed over time to diminish the reach of the rule. Comparison with rights and duties in tort: liability of sellers of goods. Food poisoning - person who buys food can successfully sue for breach of contract. Other members of the family can"t sue for breach of contract because they have no privity but they may be able to sue in tort: liability of manufacturers. Tort duty of care extends well beyond the parties to the contract to include those persons that a reasonable person could foresee as likely being harmed. Tort liability fills a void left by the application of the privity of contract rule. Trust: an arrangement that transfers property to a person who administers it for the benefit of another person. Beneficiary: a person who is entitled to the benefits of a trust or the person entitled to receive insurance monies.
