BU231 Lecture Notes - Lecture 4: Fiduciary, Rescission
Document Summary
Privity of contract & assignment of contractual rights. Privity of contract: privity of k, rule: The relationship that exists between the parties to a contract. If there is no privity between the parties, then there is no right to obtain legal remedy based in contract law. There may be opportunity to obtain legal remedy through tort law where applicable: rule can have harsh results therefore systems have been developed to get around the rule, novation: The termination of one contract and the creation of a new contract with the same or similar terms to introduce the 3rd party to the contract. Has the effect of releasing the original party to the contract: vicarious performance. Where a 3rd party performs on behalf of the promisor who remains responsible for proper performance. Don"t confuse it with vicarious liability in tort law. Corporation cannot act without an agent who is performing vicariously, but the corporation remains liable for performance: trusts.
