BU231 Chapter Notes - Chapter 12: Mastercard, Bona Fide Purchaser, Negotiable Instrument
Document Summary
Contracts create rights and duties between parties entering into the agreement, these rights may carry values transferable to an outside party . Or a party may want to arrange for their duties to be performed by another person. Privity of contract who may i sue. C offers to pay debt for a: b cannot enforce c"s promise because there is no privity of contract between them promise exists between a and c. Exceptions to privity of contract rule: tort, vicarious performance, novation, exemption clauses, trusts. Use tort whenever you do not have privity to the contract, alternative solution. Novation occurs when parties to a contract agree to terminate the original and substitute a new contract. Two types: parties change the subject matter of the contract, eg. Car dealer informs buyer that they can"t deliver a particular car by delivery date, they agree to substitute a different one at a favourable price: eg.
