H owes C $700.00.By agreement between H and R,R promises to pay this debt in return for H's undertaking to convey a house to him.C now sues R on his promise.In this situation
A)there is no contract between H and C.
B)there is a contract between H and R.
C)privity of contract prevents C from succeeding.
D)there is no contract between R and C.
E)all of the above

Question

Quizplus · Accepted Answer

In this scenario, there is no direct contract between H and C regarding the new agreement, nor is there a direct contract between R and C. The contract exists between H and R, where R agrees to pay H's debt to C in exchange for a house. However, because C was not a party to this agreement, the principle of privity of contract applies, preventing C from enforcing R's promise directly. This principle states that a contract cannot confer rights or impose obligations arising under it on any person except the parties to it.

H Owes C $700