BU231 Chapter Notes - Chapter 11: Vehicle Insurance, The Undisclosed, Negotiable Instrument
Document Summary
Chapter 11: privity of contract and the assignment of contractual. The limited 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. The general rule is that a contract does not give any benefits to or impose any obligations on a stranger to the contract. To win a lawsuit, the plaintiff must prove privity of contract with the defendant- that is, he must show that they are both parties to the same contract. Privity of contract: the relationship that exists between parties to a contract. When a consumer purchases a good, there is an implied term that the goods are reasonably suited for the purpose for which they are sold. If the goods harm the consumer, he can sue the company for breach of contract: however, anyone else who also were injured by that product cannot sue because they are a stranger.
