Dunlop sold a number of their tires to Dew & Co.on the terms that Dew & Co.would not resell them below certain listed prices and that,in the event of a sale to trade customers,Dew & Co.would get a similar undertaking not to sell below the listed prices.Dew & Co.sold the tires to Selfridge,who agreed to observe the restrictions and to pay Dunlop the sum of $5.00 for each tire sold in breach of this agreement.Selfridge in fact supplied tires to two of their own customers below the listed price.Dunlop now sues Selfridge to recover the two sums of $5.00 as liquidated damages and asks for an injunction to restrain further breaches of the agreement.In this situation
A)there is a no contract between Dew & Co.and Dunlop.
B)Dunlop has no contractual connection to the contract between Selfridge and Dew & Co.
C)Selfridge is not in breach of the contract between Dew & Co.and Dunlop.
D)Selfridge has a contract with Dunlop.
E)there is a contract between Dunlop and Selfridge.

Question

Quizplus · Accepted Answer

Dunlop has no direct contractual relationship with Selfridge, as the agreement was between Dew & Co. and Selfridge. Dunlop cannot enforce the contract terms against Selfridge directly.

Dunlop Sold a Number of Their Tires to Dew