BU231 Chapter 11: 8. Chapter 11 - Privity of Contract & the Assignment of Contractual Rights
Document Summary
Chapter 11 - privity of contract & the assignment of contractual rights. Third party: a person who is not one of the parties to a contract but is affected by it. B (cid:272)a(cid:374) sue a, who can then sue c, but there is no privity between b and c. Third party has not given consideration for the promise, so no privity & cannot sue on a contract. Liabilities of sellers of goods: if a buys goods from b, and a is harmed by the goods (ex: food) then. If a"s fa(cid:373)il(cid:455) eats the food a(cid:374)d is ha(cid:396)(cid:373)ed, the(cid:455) (cid:272)a(cid:374)(cid:374)ot sue b si(cid:374)(cid:272)e the(cid:455) ha(cid:448)e (cid:374)o p(cid:396)i(cid:448)it(cid:455) with the merchant and thus no rights (except new brunswick, who gives any user rights to sue seller) Liabilities of manufacturers: although family has no rights against retailer, the manufacturer may be liable for negligence.
