BU231 Final: BU231 Final Exam
Document Summary
Chapter 11: privity of contract and the assignment of contractual rights. The limited scope of contractual rights and duties. Third party: a person who is not one of the parties to a contract but is affected by it; cannot enforce a contract. To win a contract lawsuit, the plaintiff must prove privity of contract with the defendant- show that they are both parties to the same contract. Privity of contract: the relationship that exists between parties to a contract. Another reason for preventing a third person form suing on a contract is that the third party has not given consideration for the promise. Not only must consideration for a promise be given by a party to the contract but it must be given by the party seeking to enforce the promise. A consumer who purchases goods from a retailer receives the benefit of an implied term that the goods are reasonably suited for the purpose for which they are sold.
