Which of the following is not an example of an exception to the privity of contract rule?
A) the undisclosed principal in an agency
B) a life insurance policy
C) collateral contracts
D) bilateral contracts
E) the trust

Question

Quizplus · Accepted Answer

Bilateral contracts are not an exception to the privity of contract rule. Privity of contract means that only parties who enter into a contract can be held liable for its terms and conditions. In most cases, third parties are not bound by the contract nor can they enforce the rights and obligations contained in it. However, there are exceptions to this rule, including the undisclosed principal in an agency, a life insurance policy, collateral contracts, and the trust.

Which of the Following Is Not an Example of an Exception