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Contracts • Terms of the Contract
K#102
Legal Definition
Where the plaintiff did not buy the goods from the defendant, there may be an issue with privity. This varies from state to state.
Plain English Explanation
"Privity" is one of those things you'll need to keep an eye out for on exams because it can cause issues trying to establish liability between parties. In other words, when Sam sells Bob a bike that has warranty issues, Bob has the right to sue Sam for those issues because there is privity, meaning Sam sold the bike to Bob, and Bob is the one claiming there is a problem.
If Sam sells Bob a bike, and then Bob sells that bike to his neighbor Amy, privity doesn't exist between Sam and Amy. In some states, this may mean Amy has no right to bring a claim against Sam for certain warranties that would have been available to Bob.
If Sam sells Bob a bike, and then Bob sells that bike to his neighbor Amy, privity doesn't exist between Sam and Amy. In some states, this may mean Amy has no right to bring a claim against Sam for certain warranties that would have been available to Bob.
Visual Aids
Related Concepts
Does the Parol Evidence Rule allow evidence of defenses to enforcement?
How does a limitation on remedies affect warranties?
How do you determine who is liable for risk of loss?
How do you identify express warranties?
How is the Parol Evidence Rule handled under UCC?
Under the Parol Evidence Rule, is parol evidence admissible to clarify ambiguities?
Under the Parol Evidence Rule, what is the effect of a clerical mistake in integration?
Under the Parol Evidence Rule, what is the effect of changing or contradicting terms in a written deal?
Under the Parol Evidence Rule, when are conditions precedent admissible?
Under the Parol Evidence Rule, when will a court allow terms to be added to a written deal?
Under the UCC, in determining the seller's delivery obligations while using a common carrier, what is FOB (Free on Board)?
Under the UCC, in determining the seller's delivery obligations while using a common carrier, what is FAS (Free Alongside)?
Under the UCC, in determining the seller's delivery obligations while using a common carrier, what is CIF (Cost, Insurance, and Freight) and CF (Cost and Freight)?
Under the UCC, what is the effect of a buyer examining goods before acceptance?
Under the UCC, what is the statute of limitations on warranties of quality?
Under the UCC, when does risk of loss pass to which party when using a non-common carrier?
Under the UCC, which warranties can be disclaimed?
What are destination contracts?
What are shipment contracts?
What are the default warranties of quality available under the UCC?
What is a merger clause?
What is an implied warranty of fitness for a particular purpose?
What is an implied warranty of merchantability?
What is an integration?
What is a partial integration?
What is parol evidence?
What is the Parol Evidence Rule?
When may conduct be a source of contract terms?
