New York follows the contact rule in determining when third persons can sue accountants for negligence.

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New York follows the contact rule, also known as the privity rule, which limits the ability of third parties to sue accountants for negligence. Third parties can only sue if there is a direct contractual relationship between the accountant and the third party or if the accountant intended to benefit the third party with their services.

New York Follows the Contact Rule in Determining When Third