Privity of Contract

Question 1

What does privity of contract mean?

Answer 1

Only people involved in the contract can sue.

Question 2

Within this private relationship, what are the exceptions (aka situations where more than those involved in the contract can interrupt)?

Answer 2

1. Agency - when party A employs an agent to do the work for them and everyone agent does business with forms a contract with A… not the agent. Agent must follow the rules tho and follow guidelines.
2. Collateral contract - when party A wants job X done. Party B recommends a 3rd party company. Party A trusts them and asks 3rd party to do the job - they do and then the quality is not as good as what Party B promised. 3rd party gained a benefit because of Party B. Party A can sue Party B.
3. Assignation
4. Contract