BU231 Chapter Notes - Chapter 12: Intestacy, Negotiable Instrument, Intangible Property
Document Summary
Chapter 12: privity of contract and the assignment of contractual rights. Third party a person who is not one of the parties to a contract but is affected by it. Privity of contract the relationship that exists between parties to a contract. General rule is that a contract doesn"t confer any benefits or impose any obligations on a stranger to the contract. To succeed in an action in contract, the plaintiff must prove privity of contract with the defendant (ie. must show that they are both parties to the same contract). C owes a debt for services to a. B and c have no privity of contract since they are not related within the same contract. The manufacturer may well be liable for negligence, even though the family has no rights against them. The manufacturer caused the product to be poisonous and the merchant has no way of knowing that sealed goods are not up to standard.
