privity of contract


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Related to privity of contract: Privity of estate

privity of contract

the relationship between the parties privy to the contract, i.e. those who are direct parties to it. Until the passing of the Contracts (Rights of Third Parties) Act 1999, English law did not permit parties not in a relationship of privity to sue on a contract. Thus, a third party benefited by a contract could not sue on it. The effect of the Act has been to substantially relax this rule, although many contracts seeks to exclude the effect of the Act. Scots law and other civilian systems recognize a JUS QUAESITUM TERTIO.

PRIVITY OF CONTRACT. The relation which subsists between two contracting parties. Hamm. on Part. 182.
     2. From the nature of the covenant entered into by him, a lessee has both privity of contract and of estate; and though by an assignment of his lease he may destroy his privity of estate, still the privity of contract remains, and he is liable on his covenant notwithstanding the assignment. Dougl. 458, 764; Vin. Ab. h.t. 6 How. U. S. R. 60. Vide Privies.

References in periodicals archive ?
There is no privity of contract between these parties; and if the plaintiff can sue, every passenger, or even any person passing along the road, who was injured by the upsetting of the coach, might bring a similar action.
No statutory duty existed, and since the appellants were not themselves party to the tender that had been submitted there was no privity of contract between the appellants and Department of Public Works and Government Services.
Clearly, manufacturers or resellers with direct contracts with GSA face those issues most directly, as they are in privity of contract with the government and are subject to reviews, audits and investigations.
10) This right remains despite the fact that the indebted contractor owes amounts under the various contracts to subcontractors that perform some of the work; ordinarily subcontractors may not pursue claims against the government because they lack privity of contract.
The author contends that the Supreme Court of Canada was right in creating the "principled exception" to privity of contract in its decisions in London Drugs and Fraser River but not for the reasons given in those decisions.
Those policies hold that (a) the consumer should be protected from unsafe products, (b) manufacturers and distributors must not escape responsibility for faulty products simply because there was no privity of contract with the injured party, and (c) manufacturers and other parties in the distribution chain are better positioned to bear the costs for any injury caused by a products.
Project delivery and contract strategies are defined by three distinct characteristics: the sequencing of the design, procurement and construction project phases relative to one another; the participants who are in privity of contract with the project owner to form the project team and the primary functional relationships within the project team; and the manner in which each project participant will be paid.
Guests are not parties to the contract (as constituted by the rules) and, based on the principle of privity of contract, not bound to the terms thereof.
The law of Florida is that to recover for the breach of a warranty, either express or implied, the plaintiff must be in privity of contract with the defendant.
In England there is privity of contract between the landlord and the tenant which continues between the original parties despite an assignment of the lease to another interest.