Exceptions to the doctrine of privity of contract, Business Law and Ethics

Exceptions to the doctrine of Privity of contract

Further there are a number of exceptions to the privity of contract rule of which the subsequent may be stated:

(a) Agency

However such a principal may sue on a contract made through an agent. This exception is perhaps more apparent than genuine because the principal rather than the agent is observe as the contracting party.

(b) Negotiable instruments

Through a holder in due course of a bill of exchange can sue prior parties thereto even if there is no privity of contract between him and any to them. But this is a statutory exception under the Bills to Exchange Act.

(c) Third party insurance

However a person injured in a car accident can sue the insurance company that insured the car against such risks though he is not a party for the contract between the owner regards the car and the insurance company. Then so this is an exception under the Motor Insurance as Third Party Risks Act.

(d) Covenants running with land

However the plaintiff, in order to succeed in the case, just prove to the court such he was induced to do what he did through the promise that the defendant made and that he would not have done what he did whether the defendant had not made the promise.  Such cases the plaintiff's act and the defendant's promise constitute actually a single transaction or bargain. whether the plaintiff performed the act before the defendant through the promise, the performance to the act would not constitute consideration to the defendant's promise.

Posted Date: 1/22/2013 3:04:10 AM | Location : United States







Related Discussions:- Exceptions to the doctrine of privity of contract, Assignment Help, Ask Question on Exceptions to the doctrine of privity of contract, Get Answer, Expert's Help, Exceptions to the doctrine of privity of contract Discussions

Write discussion on Exceptions to the doctrine of privity of contract
Your posts are moderated
Related Questions
Realization of Auditors: it is a mere truism to say that the value of loans and securities depends on their realization.  We were told that a statement to that effect, is so u

Explain Non Proliferation Treaty The treaty which regulates and limits the use of nuclear weapons is known as Non Proliferation Treaty (NPT), signed in 1968. The NPT lays down

Q. What is phoenix-like activities? Phoenix activity and phoenix-like activities Many activities are referred to as "phoenixing" which do display phoenix-like characteristic

LEGISLATIVE OR PARLIAMENTARY CONTROL: (i)         Parliamentary approval and (ii)        Ministerial approval and (iii)       Publication into the England Gazette and

FutureEd corp., a Bangladesh based catering company has decided to extend its catering business in the main divisional cities. They have come up with the decision to open up some r

# difference between variation of class right and variation of enjoyment

Deferred Debts - Disclaimer of assets: Deferred Debts: A debt owed to a member as member, i.e. an unpaid dividend, is a deferred debt paid only when ordinary debts have b

Question 1: (a) Describe the concept of fiduciary Issue. (b) Why do you think this is important in a country like Mauritius? (c) Explain a case from either your own coun

Duties of Directors: The duties of directors are usually considered under two broad headings, namely- i. Duties of care and skill at common law, and ii. Fiduciary duties

As part of this project, expert input was provided by employment law specialists Herbert Geer. Herbert Geer raised the possibility that the FWO could recover amounts lost by indivi