BU231 Chapter Notes - Chapter 11: Intangible Property, Intestacy, Negotiable Instrument
Document Summary
Liability of manufactures: no privity with 3rd party. Small body of law when making a contract. Person outside contract has no rights or duties not effected. Sometimes there are such things as third party where contract affects others or a stranger. No benefits or obligations to 3rd parties. Privity of contract: relationship between parties to a contract. When is vicarious performance allowed: example: Applying the privity of contract rule to performance: Trustee person who looks after the fund. How trusts affect third parties: constructive trusts: Chapter 11: protect themselves with exemption clauses, exemption clauses: clause of contract limits liability of one party, protects business from liability of breach of contract, exemption clause protecting employees vicariously performing. They try to show that intentions were to benefit and damages should be blamed on employment: trust: arrangement transfer property to a person who administers benefit to another person.
