The rule regarding privity can be overcome by a finding of a collateral contract entered into by the same parties.

Question

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The rule of privity states that a contract can only be enforced by and against the parties to the contract. However, a collateral contract is an additional contract between the same parties that can be used to overcome the privity rule. By having a collateral contract, a third-party can then enforce the contract under certain conditions.

The Rule Regarding Privity Can Be Overcome by a Finding