Management and Organizational Studies 2275A/B Lecture Notes - Lecture 6: Punitive Damages, The Seller, Liquidated Damages

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2275A/B
• Professor: James F Hildebrand

Document Summary

Privity only parties to the contract can enforce or be liable under the contract. Ex. hire someone to cut the grass for my mother. After 3 weeks, the grass hasn"t been cut. The mother is not a party to the contract. The mother may receive a benefit but she doesn"t have an ability to enforce the contract. The person who is supposed to cut the grass does not have the ability to sue the mother. The mother is the 3rd party or a stranger to the contract. 3rd party or a stranger to the contract has no ability to enforce or be liable under a contract. Exceptions to privity: partnerships - happens in accounting or law firms that carry on a business with a view to making a profit are automatically considered to be partners. You name people as beneficiaries and when you die they can enforce the life insurance contract.