BU231 Chapter Notes -Intangible Property, Intestacy, Negotiable Instrument
Document Summary
Privity of contract: relationship that exists between parties to a contract. Generally, in order to win a contract lawsuit, the plaintiff must prove privity of contract with the defendant- that they are both parties to the same contract. The third party usually cannot be directly sued because he has not given any consideration for the promise. Not only must consideration for a promise be given by a party to the contract, but it must be given by the party seeking to enforce the promise. Liability of sellers of goods: the consumer should receive the benefit of implied terms that the goods are reasonably suited for. Liability of manufacturers: may be liable for negligence (duty to warn/ defective unit) Trusts: a fund in which is to be handed to a beneficiary in the future (ex. a mom saving money for her child in the future; college fund) Trustee: a person who is entitled to the trust.
