With regard to the law governing privity of contract and assignment,which of the following is true?
A)A statutory assignment is more difficult to enforce than an equitable assignment.
B)A party to a contract for services can assign both his contractual obligations and his contractual rights.
C)An employee sent by his employer to do a routine job for one of the employer's customers is not in a contractual relationship with the customer.
D)Novation refers to the modifications of the privity of contract rule since it allows a stranger to the contract to receive benefits from the contract.
E)Assignments are modifications of the privity of contract rule since they allow ending the original contract and entering into a new contract with changes in terms,such as substituting one party for another.

Question

Quizplus · Accepted Answer

An employee sent by his employer to do a routine job for one of the employer's customers is not in a contractual relationship with the customer. This is because the employee is not a party to the contract between the employer and customer. The privity of contract rule states that only parties to a contract are bound by its terms and can enforce its provisions.

With Regard to the Law Governing Privity of Contract and Assignment,which