The Rozny case and many others like it involve parties that were not in direct privity of contract
. The defendant surveyor provided the inaccurate survey and sold the "subject" real property to a builder who subsequently sold the real property to the plaintiff.
Alaska's exception to the economic loss doctrine for design professionals opens the door to unlimited liability to design professionals for parties not in privity of contract
. Additionally, it prevents individuals such as Sally from recovering economic losses from other professionals.
Ultimately the court makes it a point to say that the "obligation of the manufacturer should not be based alone on privity of contract
," but rather "upon the demands of social justice." Id.
However, even though the obligation to provide and pay for bunkers under a time charterer rests with the defaulting charterer, and the bunker supplier does not have privity of contract
with the vessel and its owner, the owners and their ships are still vulnerable to action in many jurisdictions.
Under these circumstances, theory could afford to reason with its eyes shut to the consequences of privity of contract
because it would know that the basic structure of society in which contracts operated was justifiable.
Andrew Robinson, who oversees Professional Liability for The Hanover as its executive vice president of Specialty, notes he's seeing more relaxed privity of contract
between clients and service providers, which leads to an increase in exposure from third-party liability--and thus more lawsuits in what he calls a "tough tort environment" for design professionals.
1986) ("It has long been the majority view in this country that an attorney will not have to answer for his negligence to a party not in privity of contract
with him in the absence of fraud or collusion.") (citing Nat'l Sav.
Generally, one who has sustained damages because of professional negligence may not proceed against the professional unless there is privity of contract
. In its petition, WHA alleged as the sole basis for Millennium's negligence that Beathard did not obtain the correct amount of coverage after VMI instructed him to procure coverage required under the lease with a certificate naming the landlord as an additional insured.
But for a unit owner to claim that a vendor's negligent misrepresentations resulted in compensable harm to them, they must show either actual privity of contract
with the vendor or a relationship so close as to approach that of privity.
(32) arose from contract, ultramares was not in privity of contract
In that case, Justice Day argued that copyright did not impose such a right, and wrote that 'In our view the copyright statutes, while protecting the owner of the copyright in his right to multiply and sell his production, do not create the right to impose, by notice, such as is disclosed in this case, a limitation at which the book shall be sold at retail by future purchasers, with whom there is no privity of contract
.'  The contract in Bobbs Merill therefore was strictly construed as only affecting the original parties to the contract and not subsequent purchasers.
Cases are grouped in sections on the formation of a contract, the terms of a contract, remedies for breach of contract, privity of contract
and third-party rights, and factors allowing escape from a contract.