BU231 Chapter Notes - Chapter 11: Accounts Receivable, Negotiable Instrument, The Undisclosed
Document Summary
Chapter 11 privity and assignment of rights. When a contract is formed, it only creates a bubble of law for the people who are involved with it shouldn"t affect people who have no part in it. Sometimes you need other people in it they"re called a third party. You must prove you have privity if you"re in a lawsuit (prove your relationship to the contract) Liability of manufacturers: negligence could trace back to the manufacturer because it"s reasonably foreseeable that people consuming the products could get harmed. Insurance: pay money in case something bad happens. The undisclosed principal: this party is represented by an agent and he is unknown by the other party. Contracts concerning land: i. e. if i get a new landlord, i still need to do repairs on my apartment according to my old contract agreement. This doesn"t give them any contractual obligations or liabilities (it just gets you cash faster)
