COMM 393 Lecture Notes - Lecture 14: Intangible Property, Collateral Contract, Beneficial Owner
Document Summary
S 6 a privity of contract and assignment. The power of a contract to affect relationships is confined to the parties who agree to it. 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 does not confer any benefits or impose any obligations on a stranger to the contract. Consideration must be given by party to the contract and given by the party seeking to enforce the promise. Liability of sellers only purchaser and seller liable, relations of purchaser have no privity of conract. Liability of manufacturers when goods sold with no intermediate inspection, manufacturers responsible for ensuring quality of goods, donoghue vs. stevenson. Vicarious performance third party performs on behalf of the promisor who remains responsible for proper performance, the third party does not assume liability.
