Consequently, contracts which attempt to confer benefits or to impose restrictions on thirdparties have no binding effect — because they cannot be legally enforced either by oragainst those third parties. So, in the example above, if C wanted to sue A because thebusiness turned out to be less profitable than A had led B to believe it was, C could not doso. C was not a party (not privy) to the contract between A and B and therefore has norights under it. Similarly, if B needed the money from C to complete his purchase from A butC defaulted, A could not sue C — even though his own contract with B would fall through asa result. Again this is because A was not a party (not privy) to the contract between B andC. Exceptions to the doctrine of privity of contractIn some clearly limited cases a third party can enforce the terms of a contract and can alsohave them enforced against him or her. Usually this is because the third party is not really a‘third party’ at all but an original party either actually or through some mechanism of the law.The major exceptions are:Joint promisees.When a promise is not made simply to one person for the benefit of athird party but to two parties jointly and simultaneously (even if it benefits only one ofthem), there is a joint promise. In such cases both joint promiseesare privy to the
As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.
Temple University Fox School of Business ‘17, Course Hero Intern
I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.
University of Pennsylvania ‘17, Course Hero Intern
The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.
Tulane University ‘16, Course Hero Intern
Ask Expert Tutors
You can ask 0 bonus questions
You can ask 0 questions (0 expire soon)
You can ask 0 questions
(will expire )