When work is guaranteed by one who repairs a building, the owner, on selling the building, may assign the guarantee to the buyer.

Question

Quizplus · Accepted Answer

According to the principle of privity of contract, only the parties who have entered into the contract can enforce the terms of the contract. However, in some cases, contractual rights can be assigned to third parties. In this case, the owner of the building may assign the guarantee to the buyer when selling the building, as long as the contract allows for such an assignment. Therefore, the statement is true.

When Work Is Guaranteed by One Who Repairs a Building