Privity of contract is the relationship between the parties in a contract.In the past,the courts applied the general rule of contract law that a person who was not a party to the contract has no right to enforce it.A person had to be in privity of contract to enforce the contract.Unless a person had purchased the defective goods,he or she had no cause of action for breach of warranty.

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Privity of Contract

Question 28

Multiple Choice

Privity of contract:

A) is the relationship between the parties in a contract.
B) is the best defense in case of negligence in action.
C) limits the duty of care owed to third-parties.
D) states the rights enjoyed by any natural person who is in the household of the buyer.

Correct Answer: