Principle

CONTRACT LAW – Privity – Person Not Party Cannot Be Held Liable

Area of law: CONTRACT LAW
Court: Spreme Court

This is corollary to Principle 623—privity works both ways. Non-parties cannot benefit: Cannot sue on contract (Principle 623). Non-parties cannot be bound: Cannot be held liable under contract. "Trite law" means: fundamental, well-established, and universally recognized. The principle: Contract binds only parties—strangers: cannot be sued…

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