LAWS 3003 Final: Study Guide
Document Summary
The principle of privity in the common law"s law of contract dictates that an individual cannot sue on a contract to which he or she was not a party. It permits contracting parties to reduce and eliminate the potential for direct, consequential, special, incidental, and indirect damages should there be a breach of contract. In some cases, a cap on damages can be used. William tweedle was engaged to a miss guy. The groom"s father entered into an agreement with the bride"s father, william guy, to pay the groom, william tweedle, 200 if he paid the groom 100, all of which was recorded in a written contract. However, william guy subsequently died, and the estate would not pay. The groom then sued william guy"s estate for the promised 200, namely the estate executor mr atkinson. The case was dismissed as no stranger to the contract can take advantage of the contract.
