BU231 Chapter 11: CHAPTER 11 - Privity
Document Summary
Privity of contract who can sue on a contract: the people who made the promises, the parties to the contract . Definition: the relationship that exists between parties to a contract: privity contract rule and third party: Under the contract law, the third party cannot sue and cannot be sued because they have no consideration and therefore since they don"t have consideration they are not part of the contract. Exceptions to the contract privity rule: tort . Under tort law, the third party has the ability to sue to. The tort duty of care extends well beyond the parties to the contract to include those persons that a reasonable person could forsee as likely being harmed. You buy a good from the retailer that causes serious harm. You have the ability to sue for breach of contract (implied term) but your family members cannot.
