Privity

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  • Created by: Tiffany
  • Created on: 20-11-11 22:30

PRIVITY

 

Defintion

Privity is the priniciple that a third party cannot sue for damages on a contract to which he/she is not a party.

Why?

The principle means that only the parties involved in the contract should be able to sue to enforce their rights or claim damages.

Problems…

Some contracts are made for the benefit for third parties but because of the principle they were unable to enforce their obligations of the contracting parties.

What did the common law reason?

Only

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